The Ministry of Education is planning to grant tax breaks to people or companies that make donations to private schools, a ministry official said yesterday.
Department of Higher Education Deputy Director Yang Yu-huei (楊玉惠) told reporters the ministry had approved a draft amendment to Article 62 of the Private School Act (私立學校法) that would allow individuals or businesses to list their donations to private schools as deductions when filing tax reports.
Yang said current regulations only allow individuals to list a maximum of 70 percent of their donations to private institutions as deductibles, while businesses can only deduct 35 percent of their donations.
However, donations to public schools are completely deductible, which is unfair to private schools, Yang said.
The draft amendment would grant similar tax breaks to those who make donations to religious schools, as religious schools are also classified as private educational institutes, Yang said.
“Individuals would be more willing to make donations to private schools if they could enjoy more tax breaks. This can also effectively resolve the difficulty many private schools experience when trying to raise funds,” Yang said.
The ministry will submit the draft amendment to the Executive Yuan for approval, Yang said.
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