RMC No. 99-2018: Clarifies certain provisions of RR No. 17-2011, as amended, implementing RA No. 9505 (Personal Equity and Retirement Account [PERA] Act of 2008)

Summary

RMC No. 99-2018 clarifies provisions of RR No. 17-2011, as amended, on the Personal Equity and Retirement Account (PERA) under RA No. 9505, in relation to RMO No. 42-2016.

Key points

1. Employer contributions. The Qualified Employer’s Contribution is not subject to Fringe Benefit Tax, whether given to all or only some employees. The employer gets no 5% credit but may deduct the actual contribution from gross income, up to the amount that completes the employee’s maximum allowable PERA contribution.
2. Early withdrawal by employee. The employer does not add back the PERA contributions it made to its gross income when the employee withdraws early.
3. Transfers. Transfer of PERA assets to another Qualified/Eligible PERA Investment Product or Administrator is not limited to cases of revoked accreditation. No Early Withdrawal Penalty applies if made within fifteen (15) calendar days from withdrawal.
4. Substituted filing. PERA Contributors are not disqualified from substituted filing because of PERA contributions, if they meet the conditions of RMC No. 1-2003.
5. Opening an account. The BIR does not require the TIN and RDO Code of the Contributor’s employer, but the Contributor must have a TIN. A Contributor’s different accounts count as one PERA account, and the incentives do not include exemption from stock transaction tax, a Percentage Tax.

Who is affected

• PERA Contributors
• Employers contributing to employee PERA

Deadlines and effectivity

• Transfer within 15 calendar days from withdrawal

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