Do you know that all incomes of Educational Institutions are subject to corporate income tax in the Philippines. However, not all educational institutions are all subject to corporate income tax. One of this are proprietary educational institutions. In this article, it will include the definition, income tax rate, allowable deductions and passive income. You will learn also why income from unrelated activities of educational insitutions are subject to tax. Let’s start by knowing the meaning of proprietary educational institutions.