Tax Notes

Circular on Newly Approved PERA UITFs by BSP

21 Jan 20262 min read

Contents

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 003-2026 on January 12, 2026, adding new Personal Equity Retirement Account (PERA) investment products to its accredited list. This update supplements earlier issuances—RMC Nos. 131-2016 and 30-2017—and aims to provide more options for Filipinos saving for retirement.

Newly Accredited PERA UITFs

EastWest Banking Corporation joins the list with four Unit Investment Trust Funds (UITFs):

EastWest PERA Peso Money Market Fund
EastWest PERA Peso Intermediate Term Bond Fund
EastWest PERA Peso Long Term Bond Fund
EastWest PERA Peso PSEi Tracker Fund

What is PERA?

Under Republic Act No. 9505, or the PERA Act of 2008, PERA refers to a voluntary retirement account established for the exclusive benefit of the contributor. These accounts are invested solely in PERA-accredited products approved by regulatory authorities.

Individuals with a Tax Identification Number (TIN) may maintain five PERA accounts, with annual contributions capped at ₱100,000 for Filipinos and ₱200,000 for Overseas Filipino Workers (OFWs).

Tax Benefits

Contribution: A contributor is entitled to a 5% income tax credit on total PERA contributions, subject to conditions under Section 8 of RA 9505.
Investment Income: Earnings from investments and reinvestments of PERA assets in these accredited products—within the allowed contribution limits—are exempt from income tax under Rule 11 of the PERA Act’s implementing rules and Section 9 of Revenue Regulation No. 17-2011.
Distribution: Contributors aged 55 and above, with at least five years of contributions, may withdraw their PERA funds tax-free, including investment income.

Impact

The inclusion of EastWest Banking Corporation’s UITFs expands investment options for PERA contributors, encouraging more Filipinos to save for retirement while enjoying tax-exempt benefits.

Source:

P&A Grant Thornton

Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.

As published in SunStar Cebu, dated on 21 January 2026