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Thursday, March 28, 2024

Pera guidelines up

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The Bureau of Internal Revenue on Friday issued the guidelines of the Personal Equity and Retirement Account Act of 2008, or the Pera law. 

BIR Commissioner Caesar Dulay issued a directive spelling out the guidelines and procedures for proper administrative reporting of Pera transactions involving contributions, income, withdrawals and terminations.

Individuals under the Republic Act No. 9505 are allowed to set up their own Pera which shall enjoy certain tax incentives.  

Dulay reiterated that contributions to Pera not exceeding P100,000 every year could come from employees or their  employers or self-employed  individuals 

For migrant Filipino workers, the maximum amount they could invest in Pera was limited up to P200,000 a year. 

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The BIR also said that a contributor may create and maintain a maximum of five  Peras at any one time. 

The BIR said a 5-percent tax credit is entitled to an employee of self-employed contributor, which will be credited against their income tax liabilities for the same year. Gabrielle H. Binaday

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