PEAC releases advisory on the tax treatment of the Teacher Salary Subsidy

In response to the concern of ESC participating schools and teachers with regard to the tax treatment of the Teacher Salary Subsidy (TSS), the Private Education Assistance Committee (PEAC) has instructed SLB Attorneys-at-Law to draft an advisory in accordance with existing tax laws to serve as guide to participating schools.

For school year 2016-2017, eligible teachers of private junior high schools participating in the Education Service Contracting (ESC) of the GASTPE Program of the Department of Education (DepEd) receive a subsidy of P18,000 per year. TSS teacher-recipients should be teaching ESC grantees a minimum of 180 minutes per week, and should have passed the LET and have a PRC license.

DepEd established a Teachers’ Salary Subsidy Fund in support of Section 14 of Republic Act 8545, or the Government Assistance to Students and Teachers in Private Education (GASTPE).