RR No. 10-2016 — Amends Section 10.C. of RR No. 17-2011, which implements the early withdrawal penalty of RA No. 9505 (Personal Equity and Retirement Account [PERA] Act of 2008) (Published in Manila Bulletin on December 28, 2016)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION RECEIVED DEC 2^7 2016 ID:23A. M. UM

Date: Decemher 27, 2016

RevenUe reguLatIOns nO. -./D- 20 I (

SUBJECT: Amending Section 10.C. of Revenue Regulations No. 17-2011 (PERA) Act of 2008 Implementing the Early Withdrawal Penalty of Republic Act No. 9505. Otherwise Known as the Personal Equity and Retirement Accouni

TO All Internal Revenue Officers and Others Concerned

National Internal Revenue Code of 1997, as amended, in relation to Section 13 of Provisions of Republic Act No. 9505, Otherwise Known as the "Personal Equity and SECTION 1. Scope. --- Pursuant to the provisions of Sections 244 and 245 of the Republic Act (RA) No. 9505, these Regulations are hereby promulgated to amend Section 10.C. of Revenue Regulations (RR) No. 17-2011, Impiementing the Tax Retirement Account (PERA) Act of 2008"

SECTiON 2. Amendment. -- Section 10.C. of RR No. 17-2011 is hereby amended to read as follows:

"SECTION 10. PERA Distributions and Early Withdrawals.

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the circumstances under Section 10 (B) above, the Contributor shall pay the following C Early Withdrawal Penalties: Imposition of Penalty. --- In case of Early Withdrawals not falling under any of

(1) The five percent (5%) tax credit availed by the Contributor for the entire period of the PERA;

2 A flat rate of twenty percent (20%) based on the total income to the time of withdrawal. earned by said account from the time of its opening/creation up

For full transparency, the Administrator shall fully disclose the above penalty arising from withdrawals to the contributor prior to account cpening.

Likewise, the Administrator shall submit a quarterly report of such termination or withdrawal to the PERA Processing Office, within sixty (60) days following the end of the quarter of the date of termination or withdrawal."

SECTION 3. Repealing Clause. --- The provisions of RR 17-2011 and all other issuances inconsistent herewith are hereby repealed, modified or amended accordingly

SECTION 4. Effectivity. These Revenue Regulations shall take effect immediately

CArLOS G. DOMKGUE Department of Finance Secretary

Recommending Approval:

006359

U N BUREAU OF INTERNAL REVENUE

Commissioner of internal Revenue CAESAR R. DUIAY + 002550 RECORDS MGT DVISION RECEIVEO DEC 27 2016 - 1 10:234M Um