SM Prime Holdings (SMPH) and Deutsche Bank AG have together chipped in almost P10 million in fresh contributions to new projects in the education sector under the Adopt-a-School program.

SMPH and SM Foundation Inc. have just constructed 14 new classrooms (seven school buildings with two classrooms each) at a total cost of P7 million, to include toilets, desks and chairs, ceiling fans and blackboards.

In addition SMPH teamed up with Deutsche Bank to put up a four-classroom, two-level school building, with furniture and equipment, at total cost of P2.7 million.

Lauding the two big-hearted corporate giants was Cebu Rep. Eduardo Gullas who has been challenging big business to devote more social development funds to energizing the Adopt-a-School Program, stressing the need for government and the private sector to combine forces in willfully resolving the school system’s crippling resource gaps.

An educator, Gullas is author of the 1998 law that established the Adopt-a-School Program, which has so far generated more than P4 billion in contributions from the private sector.

Under Republic Act 8525, the program spurs private entities to help finance public schools in all levels in exchange for additional tax gains.

Contributing firms or individuals may deduct from their gross taxable income the amount equal to 150 percent of their aid. For instance, should a firm spend P300,000 to build a new classroom, it may claim a P450,000-deduction.

To claim deductions, the valuation of aid other than cash would be based on the acquisition cost or purchase price of the property, equipment, materials and services supplied. Contributed used properties are subject to depreciation.

“Congress conceded these lucrative tax privileges precisely to allow private entities to get more value for their money, while encouraging them to heartily support our schools,” Gullas said.

Controlled by retail and banking magnate Henry Sy Sr., SMPH is the country’s largest mall operator. The firm operates 30 malls nationwide with an aggregate shopping space of more than 390 hectares. SMPH is expected to generate around P18.5 billion in revenues this year from rent, cinema ticket sales and amusement income.

Founded in 1870, Deutsche Bank is the largest bank in Germany and one of the world’s leading financial companies, with 1,600 offices in 70 countries, including the Philippines.

This is not the first time that SMPH and Deutsche Bank have supported the Adopt-a-School Program.