RR No. 6-2021: Prescribes additional guidelines for implementing the tax provisions of the PERA Act of 2008 effectively amending pertinent provisions of RR No. 17-2011

Summary

RR No. 6-2021 prescribes additional guidelines for the tax provisions of the Personal Equity and Retirement Account (PERA) Act of 2008, amending pertinent provisions of RR No. 17-2011.

Key points

1. Reports and systems. PERA Administrators submit the reports under Section 2 through the PERASys administered by the Bangko Sentral ng Pilipinas. These are forwarded to the BIR for approval by the PERA Processing Office through the ePERA System.
2. PERA-Tax Credit Certificate. The PERA-TCC evidences a tax credit equal to five percent (5%) of total qualified PERA contributions made in a year. The PERA Administrator applies online through the PERASys within sixty (60) days from the close of the calendar year, and the PERA Processing Office approves it and generates it through the ePERA System.
3. Use of the PERA-TCC. It pays Income Tax liabilities of qualified employee and self-employed contributors, and any internal revenue taxes for qualified overseas Filipino contributors. Employees submit it to the employer for the annual year-end adjustment, and in all cases it is surrendered and attached to the tax return filed with the RDO.
4. Early withdrawal penalties. The PERA Administrator deducts the 5% and 20% penalties under RR No. 10-2016 from the account before releasing the withdrawal. The 5% applies to the tax credit availed for the entire period and is paid on BIR Form 0605 in the qualified contributor’s name, by the last day of the month after the close of the calendar quarter of the deduction. The 20% applies to total income earned from opening to withdrawal and is paid on Form 1601FQ in the PERA Administrator’s name.

Who is affected

• PERA Administrators
• Qualified employee, self-employed and overseas Filipino contributors

Deadlines and effectivity

• PERA-TCC application within sixty (60) days from the close of the calendar year
• 5% penalty paid by the last day of the month following the close of the calendar quarter of deduction

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