English: According to Gatchalian, the signing of the law clarifies and reinforces the intention of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) to provide relief to private schools. It can be recalled, however, that the Bureau of Internal Revenue (BIR) came up with Revenue Regulation No. 5 which said that an educational institution can avail of the lower tax rate if it is proprietary and non-profit. For schools that do not meet the category, a 25% rate would be imposed, an equivalent of a 150% increase.
Filipino: Ayon kay Gatchalian, nililinaw at binibigyang diin ng bagong batas ang intensyon ng Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) na magpataw ng mas mababang buwis sa mga pribadong paaralan. Matatandaang inilabas ng Bureau of Internal Revenue (BIR) ang Revenue Regulation No. 5 kung saan nakasaad na ang mga paaralang proprietary at non-profit lamang ang maaaring mapatawan ng mas mababang buwis. Para sa mga paaralang hindi pasok sa ganitong depinisyon, kinakailangan nilang magbayad ng dalawampu't limang porsyentong buwis o katumbas ng isang daan at limampung porsyentong pagtaas.