RR No. 22-2025: Further Amending Pertinent Provisions of Revenue Regulations 17-2011 to Implement Section 9 of Republic Act (RA) No. 12214, Otherwise Known as the “Capital Markets Efficiency Promotion Act”, on Additional Deduction of Qualified Employer’s Actual Contributions Made to Personal Equity and Retirement Acccount (PERA) Under RA No. 9505, Otherwise Known as the “PERA Act of 2008”

Key points

1. Basic employer deduction. The employer can deduct its actual Qualified Employer’s Contribution from gross income, but only up to the amount that completes the employee’s maximum allowable PERA contribution.
2. Additional 50% deduction. Private employers making voluntary contributions to employees’ PERA get an additional deduction equal to fifty percent (50%) of the amount contributed.
3. Conditions. The employer must contribute at least as much as its employees, up to the maximum under RR No. 17-2011, as amended by RR No. 7-2023. Only private employers that contribute to all of their employees’ PERA qualify, and each employee must also have contributed to PERA in the same calendar year.
4. Withholding and recording. The deductible contribution is exempt from withholding tax on compensation, and the Administrator issues the employer a certificate of the amount. The account is named Share in Qualified Employee’s PERA Contribution, with full details disclosed in the Notes to Financial Statements.

Who is affected

• Private employers contributing to employees’ PERA

Deadlines and effectivity

• Issued August 8, 2025