Personal Equity and Retirement Account (PERA)
Frequently Asked Questions
1. Who is eligible to apply for PERA?
- Filipino Citizen
- A person who reacquired his or her Filipino Citizenship
- Legitimate spouse of a Filipino citizen
- 18 and above with a capacity to contract and possess a TIN
- Employed or Self-employed
2. How much is the maximum Annual Contribution?
Working in the Philippines - Php 100,000
OFW - Php 200,000
If married each spouse - Php100,000
can contribute up to
3. What are the benefits of PERA?
- Entitled to 5% tax credit of your total contribution
- Income generated from PERA assets are exempt from tax
- PERA assets are not part of general assets hence cannot attach in case of insolvency
4. What constitutes early withdrawal?
- before age 55 or death
- before the contributor has made contributions for at least five years
5. What are the exemptions for a penalty of early withdrawal?
- A notarized doctor’s certificate attesting to an accident or illness-related hospitalization in excess of thirty (30) day
- Certification from the pertinent government agency that the Contributor has been subsequently rendered permanently totally disabled
- The distribution of the funds for which the Contributor did not enjoy any tax incentive shall not be subject to any early withdrawal penalty
7. What is considered as PERA Investment Products?
- Unit Investment Trust Funds
- Shares stocks Mutual Funds
- Annuity Contracts
- Insurance Pension Products
- Pre Need Pension Plans
- Government Securities
- Shares of Stocks or other securities
- Exchange-traded bonds
- Gov Sec
8. What is the penalty for early withdrawal?
- Compute and withhold amount equivalent to tax incentives.
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