GUIDE · UPDATED 28 OCTOBER 2026

Adopt-a-School Program tax deduction (RA 8525): a plain-language guide for companies

What is the Adopt-a-School Act?

Republic Act No. 8525, the Adopt-a-School Act of 1998 ↗, sets up the Adopt-a-School Program. It lets private entities help public schools, for example by upgrading facilities or providing instructional materials. The law says the school should preferably be in one of the poorest provinces.

How the potential 150% deduction adds up

100%the donation itself, deductible from gross income subject to the limits and conditions of the Tax Code (Section 34(H))

+ 50%an additional deduction for Adopt-a-School expenses under Section 5 of RA 8525

= 150%potential total deduction from gross income for a qualifying donation

For non-cash assistance, such as chairs, Section 5 says the value is based on the acquisition cost of the property.

An illustration with one classroom

One FORYO classroom is 50 chairs for ₱125,000. If the full amount qualifies, the potential deduction is 150% × ₱125,000 = ₱187,500. At an assumed 25% income tax rate, that would reduce income tax by about ₱46,875. This is an illustration only; your actual result depends on your tax position.

What it is not

Not a refund and not a tax credit. It reduces taxable income.
Not a discount. Your company still contributes the full chair amount.
Not automatic. It depends on eligibility, agreements, documentation, valuation and applicable tax rules.
Not claimable twice. Similar incentives cannot be claimed twice for the same donation.

What the law and BIR rules describe

An agreement. RA 8525 calls for a Memorandum of Agreement between the adopting entity and the head of the school, subject to review and approval by the Superintendent of Schools. The law says the agreement lasts at least two years, with the possibility of extension.
The right taxable year. The BIR RR 13-2025 digest ↗ says the deduction is claimed in the taxable year the expenses were paid or incurred.
Additional recognition. Section 6 of RA 8525 also lets the adopting company have its name shown beneath the school’s name under the Adopt-a-School Program, and be represented in the local school board.

Documents typically needed

The BIR RR 13-2025 digest lists substantiation such as:

official invoices and other adequate records of the amount claimed;
records showing how the expense relates to your participation in the Adopt-a-School Program, including a list of projects or activities, the cost of each, and where and how the assistance was used, as supported by the agreement;
proof or acknowledgment of receipt of the donated property by the recipient public school.

Also see BIR RMC 23-2026 ↗. Your tax adviser can confirm the full, current list for your company.

Steps with FORYO

Request. Use the classroom calculator and send a request. Tick the box for tax-incentive documentation details.
Confirm. We follow up on the school, batch timing, payment and documents. No payment is taken on the website.
Batch. We pool sponsorships into batches of 1,000 chairs (20 classrooms), then produce and deliver.
Handover. Your company receives donation, delivery and acceptance records.
Claim. Your tax adviser decides whether and how to claim the deduction.