Summary
RR No. 7-2023 amends RR Nos. 17-2011 and 2-2022, which implement RA No. 9505, the Personal Equity and Retirement Account (PERA) Act of 2008.
Key points
- Contribution limits. Qualified PERA Contributions may not exceed 200,000.00 per calendar year for a non-Overseas Filipino, or 400,000.00 per calendar year for an Overseas Filipino or a person in representation of one. The Secretary of Finance may adjust these amounts.
- Illustration by contributor type. The table in Section 6 of RR No. 17-2011 lists Php 200,000.00 or Php 400,000.00 depending on whether the contributor is married, whether the spouse qualifies, and whether the contributor is an Overseas Filipino. For a spouse and children in representation of an Overseas Filipino who did not open a PERA, the limit is Php 400,000.00 cumulative.
- Excess contributions. Amounts above Php 200,000.00 or Php 400,000.00, as the case may be, are not accepted under the PERA Account. The Administrator may accept them as another Savings/Investment Account, without any benefit under the PERA Act.
- Expiration of PERA TCC. Under Section 4 of RR No. 2-2022, a PERA tax credit certificate unutilized after five (5) years from issuance is invalid and cannot pay internal revenue tax liabilities. The ePERA System cancels the amount, and a damaged or lost certificate cannot be reissued after five (5) years from the original’s issuance.
Who is affected
- PERA contributors
- Overseas Filipino contributors and their spouses and children
Deadlines and effectivity
- Increased maximum contributions apply starting January 1, 2023
- Other provisions take effect fifteen (15) days after publication in the Official Gazette or a newspaper of general circulation, whichever is earlier
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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