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Finally,PERAlawupforimplementation|Business,News,ThePhilippineStar|philstar.com
Fri|07/22/201610:36pm|Forex:$1:47.070

FOLLOWUS:

205,3000.24%

I
46,0000.51%

ICT
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IDC
661,4003.51%

IMI
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IMP
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IMPB
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Finally,PERAlawupforimplementation
ByPrinzMagtulis(philstar.com)|UpdatedJuly22,20166:22pm

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ThePERALawwaspassedin2008.Filephoto
MANILA,PhilippinesEmployeesmaysoonseeadditionaldeductionsontheirmonthlysalariestobeputforretirementaftertheBureauofInternalRevenuefinally

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Finally,PERAlawupforimplementation|Business,News,ThePhilippineStar|philstar.com

gavethelongdelayedgoaheadtoasavingsprogrampassedin2008.

ThegosignalwasissuedthroughRevenueMemorandumOrder422016thatlaidoutreportorialrequirementsforRepublicAct9505orthePersonalEquityand
RetirementAccount(PERA)Law.

"Withtheenginesallsetoutfortheproperimplementation...manyemployersareexpectedtotakethisopportunitytobecomeanagent...topromotecapitalmarket
developmentandsavingsmobilization,"theorderstated.

"Employees,includingselfemployedindividualsandoverseasFilipinos,canstartplanningtheirfuturebyestablishingtheirownPERA,"itadded.

PERAestablishesaretirementsystemwherecontributionsaremadebybothemployersandemployees.

Thesecontributionsaremanagedandinvestedbyan"administrator"chosenbytheemployee.AnypersonmayonlyhaveamaximumoffivePERAaccounts
cumulativelyworthuptoP200,000.

Contributorsareentitledtoincometaxcrediteveryyearworthfivepercentofhisorherannualcontributions.

PERAwillcomeontopofexistingcontributionstopensionfundsSocialSecuritySystemandGovernmentServiceInsuranceSystem.

TheEmployersConfederationofthePhilippinesdeclinedtocommentonpossibleadditionalcoststoemployers.

Themeasureisalsoconsideredrevenueeroding,withoriginalgovernmentestimatesofP12billionlostperyear.

"WebelievethatthelongtermbenefitsofthePERAwouldoutweightherevenueloss,"saidBenedictTugonon,presidentoftaxindustrygroupTaxManagement
AssociationofthePhilippines.

Undertheorder,PERAadministratorwillneedtoapplybeforetheBIR'sAudit,Information,TaxExemptionandIncentivesDivision,wheretheywillalsosubmit
quarterlyandannualreports.

ReportswillcontainPERAtransactions,includingcontributions,incomeearned,assetswhereitisinvested,earlywithdrawalsandterminationsbycontributors.

Theyarealsotaskedtomaintaina"record"ofalltheseinformation.BIRandtheBangkoSentralngPilipinas(BSP),meanwhile,willestablishnetworkconnectivityfor
monitoring.

"Evenwiththisorder,PERAcouldnotbeimplementedwithoutadministratorsapplyingbeforeBSP,"formerBIRcommissionerKimHenaressaidbyphone.

BSPdeputygovernorNestorEspenillaJr.saidthecentralbankhasapprovedtwoadministratorssofar.

FinanceSecretaryCarlosDominguezIIIhadmadeithisprioritytoimplementPERAduringthefirstsixmonthsoftheDuterteadministration.

HenaressaidshedidnotintentionallydelayPERA'sissuancebecauseitwilldecreaserevenues.

"IwassupposedtosignitafterApril15toavoidconfusioninincometaxpayments.Thatwasthesamedraftsignednow,"shesaid.

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Jointhediscussion
Nice18minutesago

Isit100Kforlocalemployeesand200kforOFW's?

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theobserver42minutesago

thisisagreatpolicy,butwhyisitcappedat200k?

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