RMC No. 94-2026: Additional Guidelines on the Utilization of the Personal Equity and Retirement Account Tax Credit Certificates

Summary

RMC No. 94-2026 provides additional guidelines on the use of Personal Equity and Retirement Account (PERA) Tax Credit Certificates (TCC), covering application, validity, utilization limits, and filing and payment instructions by contributor type.

Key points

1. Credit and application. A PERA Contributor gets a five percent (5%) tax credit on the total qualified amount contributed in a year. The PERA Administrator applies electronically for the TCCs of all Contributors to the BSP PERASys within sixty (60) days from the end of each calendar year, for BIR processing and approval through the ePERA System. On written request, the TCC is issued in print or sent as a PDF to the Contributor’s official email.
2. Validity and contributor type. Under RR No. 7-2023, a PERA TCC is valid for five (5) years from its date, for TCCs issued on or after July 27, 2023. An Overseas Filipino who maxed out contributions and then changed type within the year gets a credit based on contributions as an Overseas Filipino. The TCC bears the “Self-Employed/Employee” type, valid solely for Income Tax payment. A change declared after TCC approval is no longer considered.
3. Partial use, forfeiture and transfer. A Contributor may use only part of the credit under RR No. 2-2022. Any TCC amount above the tax due per return released to an overseas Filipino or self-employed contributor is forfeited in favor of the government. An unused TCC cannot be transferred to anyone, including an estate. Employee and self-employed credits apply only to Income Tax, while an overseas Filipino’s credit may be used against any internal revenue tax.
4. RDO validation and deficiencies. RDOs validate each TCC by QR code or the ePERA System and tag it as “CLAIMED”. A deficiency from wrong computation or a spurious or invalid TCC leads to a written notice for collection, and use of a spurious or invalid TCC carries criminal liability. If the PERA is withdrawn or terminated early, approved TCCs already printed and released count as utilized for the early withdrawal penalties, unless proven otherwise.
5. Employees. For employees whose compensation tax was correctly withheld, the employer applies the TCC in the year-end adjustment. If the tax withheld exceeds the tax due less the TCC, the employer refunds the excess. If the TCC exceeds the tax due, the excess is carried over against withholding tax in the next taxable year.
6. Self-employed and Overseas Filipinos. The TCC is shown as “5% PERA TCC” in the “Other Tax Credits/Payments (specify)” line of the return, or under Part III, Tax Debit Memo/5% PERA Tax Credit Certificate, if that line is absent. With tax due, the return is filed online with the Tax Return Receipt Confirmation and TCC copy, and paid through an AAB or ePay Gateways. Without tax due, a “NO Payment” return is filed through the Offline eBIRForms package, and the TCC copy and printed return go to the RDO. Income tax returns are attached through the eAFS System, with the TCC under Other Attachments.

Who is affected

• PERA Contributors (employees, self-employed, Overseas Filipinos)
• PERA Administrators
• Employers of PERA Contributors
• Revenue District Offices

Deadlines and effectivity

• TCC application by PERA Administrator: within sixty (60) days from the end of each calendar year
• TCC validity: five (5) years from the date on the TCC
• RR No. 7-2023 validity rule applies to TCCs issued on or after July 27, 2023
• Issued August 13, 2026

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.