The Bureau of Internal Revenue issued Revenue Regulations No. 7-2023 to amend certain provisions of RR Nos. 17-2011 and 2-2022 for the implementation of the “Personal Equity and Retirement Account Act of 2008”.
It said RR No. 7-2023 raised the maximum annual PERA contributions per calendar year to P200,000 if the contributor is a non-overseas Filipino or P400,000.00 if the contributor is an overseas Filipino or represents an overseas Filipino.
Contributions to the PERA amounting to more than P200,000 or P400,000.00, as the case may be, will not be accepted by the administrator under the PERA account. However, they may be accepted by the administrator as other savings/investment account after appropriate advice given to contributor but would not be entitled to any benefit under the PERA Act.
A PERA-tax credit certificate issued in accordance with the pertinent provisions of RR No. 17-2011, as amended, that remains unutilized after five years from the date of issuance will be considered invalid and will not be allowed as payment for internal revenue tax liabilities of the PERA contributor.
The amount covered by the certificate issued would be automatically cancelled by the ePERA System. In case of damaged or lost certificate, reissuance of certificate will not be available after five years from the date of issuance of the original certificate.
The PERA-TCC refers to the document evidencing the amount of tax credit equivalent to 5 percent of the total amount of qualified PERA contributions made in a year.
The application for PERA-TCC should be filed online though the PERASys by the PERA administrator within 60 days from the close of the calendar year.
Under RR No. 2-2022, the PERA-TCC will be used only for the payment of income tax liabilities of qualified employee and self-employed contributors, while for qualified overseas Filipino contributor, the PERA-TCC can be used in the payment of any internal revenue taxes.