7/22/2016

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
741,8203.61%

IDC
661,4003.51%

IMI
265,0000.35%

IMP
412,0001.40%

IMPB
3,1404.25%

ION
700,0000.85%

1.96

64.10

5.90

5.73

24.65

194.00

2.38

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

21

1769

googleplus

Like

895

ThePERALawwaspassedin2008.Filephoto
MANILA,PhilippinesEmployeesmaysoonseeadditionaldeductionsontheirmonthlysalariestobeputforretirementaftertheBureauofInternalRevenuefinally

http://www.philstar.com/business/2016/07/22/1605527/finallyperalawimplementation

1/4

7/22/2016

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.

16%

3 min to Spreed

BacktoTop

IwataCM15RHF02

AsahiTF012

P398

P3,998

Clickheretojointhediscussion
FOLLOWUS:

SPONSOREDPOSTS

http://www.philstar.com/business/2016/07/22/1605527/finallyperalawimplementation

2/4

7/22/2016

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

ApplebeesatEastwoodwill

Buyingacondo?Settlethese4

Smartunboxeslatestdigital

makeyouwanttocelebrate

importantthingsfirst

products,services

everything

YOUMIGHTALSOLIKE

Atlast,Rhianyieldsto
the7yearitch
(Entertainment)

Ruffasmysterious
ailmentsoftens
Annabellesheart

JessyMedioladenies
romanticlinkwithIan
Veneracion

WhartonMBA
InformationSession

(Entertainment)

(Entertainment)

ToIPOorNottoIPO:
ThatIstheQuestion

MirrorMeBooth
Portable,Durable,
Protected,andSimpleto
SetUp!

(Business)

Theworldsbestairlines
for2016havebeen
announced
(LifestyleAsia)

(TheFinancialistbyCredit
Suisse)

AreYouSmarterthanan
Algorithm?
(TheFinancialistbyCredit
Suisse)

(NewDigital&Interactive
EntertainmentProducts
FotoMaster)

MirrorMeBoothIs
FluentInMultiple
Languages!

NewAnimationsfor
MirrorMeBoothVersion
II

RussianOligarchto
Spend$1Billionon3
MiamiCondoTowers

(NewDigital&Interactive
EntertainmentProducts
FotoMaster)

(NewDigital&Interactive
EntertainmentProducts
FotoMaster)

(MansionGlobal)

WeekinReview
(MansionGlobal)

3 min to Spreed

BacktoTop

Recommendedby

MOREBUSINESS
LIVEupdates:SmartintroducesLaunchpad
Industriesdefendcoaluseforpower
LopezGroupventuresintosolarrooftopdevelopment
DOEstandspatonexplorationmoratoriuminWestPhilippine
Sea
7Eleventobuild250storesinMindanao
Hyundaisalesaccelerate53%inH1
NREBpushesmorereformsinrenewableenergy
HybridriceproducerplansP8BIPO

SECTIONS
Home
Headlines
Opinion
Nation
World
Business
Sports
Entertainment
Lifestyle
OtherSections

DoubleDragonplansadditionalP10Bbondissuethisyear
UptothecourtstoresolveIlijanclaimSMC

http://www.philstar.com/business/2016/07/22/1605527/finallyperalawimplementation

3/4

7/22/2016

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

FEEDBACK
Sponsored

HanabishiHMAC6U
398abenson.com.ph

Legveinsrefreshment.Thisisaneffectivewaytoeliminateheavylegsandswelling.
Stamina

30WeirdlyLargeCatsTooBizarreToBelieve
PressRoomVIP

Findoutwhymorethan20millionpeoplecan'tstopplayingthisgame
Pirates:FreeOnlineGame

SayGoodbyeToSnoring,SayHellotoSleep
MySnoringSolution

JohnTravolta&12OtherCelebsWhoOnlyFlyPrivate
ZestVIP

2Comments
Recommend

Philstar.com

Share

Login

SortbyNewest

Jointhediscussion
Nice18minutesago

Isit100Kforlocalemployeesand200kforOFW's?

Reply Share

theobserver42minutesago

thisisagreatpolicy,butwhyisitcappedat200k?

Reply Share

Subscribe d AddDisqustoyoursiteAddDisqusAdd

Privacy

THEPHILIPPINESTAR | PILIPINOSTARNGAYON | THEFREEMAN | PANGMASA | BANAT

http://www.philstar.com/business/2016/07/22/1605527/finallyperalawimplementation

Copyright2012.Philstar.AllRightReserved

4/4