RMO No. 17-2022 — Prescribes the policies and procedures in the issuance of Tax Credit Certificate arising from Personal Equity Retirement Account (PERA) and its utilization using the ePERA system Digest | Full Text | Annex A | Annex B | Annex C | Annex D | Annex E | Annex F | Annex G

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

1 7 MAR 2022

REVENUE MEMORANDUM ORDER NO. 17- 2022 SUBJECT Prescribing the Policies and Procedures in the Issuance of Tax Credit Its Utilization using the ePE RA System Certificate Arising from Personal Equity Retirement Account (PERA) and

TO All Internal Revenue Officials and Empioyees and Others Concerned

I BACKGROUND

Certificate (PERA-TCC) as incentives to individuals who made qualified contributions to the PERA. To implement the provisions of Republic Act No. 9505, otherwise known as the "Personal Equity and Retirement Account (PERA) Act of 2008, Revenue Regulations (RR) No. 17 2(11 1 was issued. In 2016, Revenue Memorandum Order (RMO) No. 42-2016, as amended. was likewise issued to provide for the guidelines and procedures in the accreditation of PERA Administrators and the processing of applications for the PERA- Tax Credit

contributor and account management. The Bangko Sentral ng Pilipinas (BSP), as the regulatory agency of the PERA C>ntributor's database through an application called "PERASys". This system handles the Administrators, operationalized the abovementioned RA provisions and created PERA

eI'ERA System. With the development of the ePERA system, BSP's PERASys was sy stems now serve as submission facility for the quarterly/annual report and application for In 2020, BSP helped the Bureau establish a system that will facilitate the receipt of required reports initially submitted through PERASys by PERA Administrators. This is now the er:hanced in such a way that upon registration/enrollment to PERA, a validation facility has be:en provided thru an application programming interface (API) with ePERA system. Both PERA-TCC.

eF'ERA system, where approval of the reports and the corresponding PERA-TCC shall be he.ndled. O:ce the reports submitted by the PERA Administrator were authorized and approved by the BSP for PERA-TCC issuance at the PERASys, the data shall be transferred to the BIR

H OBJECTIVES

This Order is issued to:

Provide policies and procedures relative to the processing and issuance of the PERA- TCC using the ePERA system: C C To ensure PERA Administrator's compliance to the reportorial requirements To ensure PERA-TCCs are issued properly and securely To ensure PERA-TCCs are utilized within limits

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2 Identify the concerned offices in the BIR that shall be responsible for the processing

and approval of PERA-TCC; and

3 Prescribe procedures that shall be followed by concerned BIR offices in the

monitoring of fully or partially utilized PERA- TCCs.

H POLICJES

The ePERA system shall manage the proper administrative reporting of PERA transactions invo!ving contributions, income, withdrawals and/or terminations using simplified and uniform formats for a coordinated monitoring of tax privileges and incentives granted to qualified PERA contributions under Report Compliance Module.

Report Compliance module of the ePERA system: The following are the reports to be submitted by the PERA Administrator under the

NO 3 4 2 Quarterly Report on PERA Not later than the Contributions Annual Report on PERA (cumulative 1st to 4th Quarter) Contributions Distributions/ Withdrawals/ Terminations Annual Report on PERA (cumulative 1 st to 4th Quarter) Distributions/Early Withdrawals/ Terminations Quarterly Report on PERA Name of Report Early Within sixty (60) days Within sixty days (60) Within sixty days (60) the calendar year the calendar year days from the close of following the end of the Due Date of Submission every quarter days from the close of following the close of quarter of the date of termination or withdrawal fifteenth (15th) day Annex "B Annex "D" Annex "C" "Annex "A" Format

The annual reports on PERA Contributions, as well as PERA Distributions/ Early reports submitted. Withdrawals/Terminations shall be the cumulative result of the ist to 4th quarterly

2 The ePERA system which is connected to the PERASys shall use an application

Administrator. programming interface (API) to facilitate the validation of the TIN of a qualified contributor as reflected in the quarterly reports being submitted by the PERA

3 Late submission and non-submission of required reports shall be subjected to penalty Administrator from complying with the submission of the required reports. imposition. However, payment of penalty shall not exonerate the PERA

each and every case of non-submission or late submission of required reports during a taxable year by PERA Administrator. For this purpose, failure to supply any of the required reports shall constitute a single act of omission. The compromise penalties under the existing revenue issuances shall be imposed for

4 The received application in batch for PERA-TCC using BIR Form 2338 (Annex E) and BIR Form i942 (Annex F) submitted by the PERA Administrator within sixty

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processed by the PERA Processing Office using ePERA System's Tax Credit Application Module and endorsed to the Commissioner or his authorized representative, for approval. (60) days from the close of the calendar year through the PERASys, shall be

5 Once the batch application for issuance of PERA-TCC is approved, the approved PERA-TCC for the year can now be viewed at the Tax Credit Certificate Module- PERASys and shall be readily available for generation and dissemination to the qualified contributor using the Utilization Request Module- PERASys.

Alphalist of PERA Contributors of ePERA system for reporting to the top On the other hand, the approved PERA-TCC for the year shall be viewed at the management.

the PERA-TCC shall be tagged as ISSUED at the PERASys and ePERA system. by the PERA Administrator and issued physically to the contributor or to his/her PDF file to the official email of the contributor, for the latter to print. Once it is printed. Upon written request of the PERA Contributor, the PERA-TCC shall either be printed authorized representative using Utilization Request Module -- PERASys, or sent in

The PERA-TCC can be issued in full or partial amount, depending on the written request of its utilization by the contributor.

contribution of an employee. hand, the employers may obtain from the PERA Administrator the Certificate of Aggregate Amount of Qualified PERA Contribution (BIR Form No. 2338) for their employees with regard to their share on the qualified contributions. The employers may claim as a deduction from gross income their share, but only to the extent of the employer's contribution that would complete the maximum allowable PERA In cases of employers who contribute a share to the account of their qualified employee, only the latter can request for the issuance of PERA-TCC. On the other

6 The PERA-TCC shall be used for the payment of income tax liabilities of qualified

employee and self-employed contributors, while for qualified overseas Filipino contributor, the PERA-TCC can be used in the payment of any internal revenue taxes.

to be validated at the ePERA system. The PERA-TCC shall be attached to the applicable tax returns and presented to the concerned RDO prior to the filing of return and payment of any corresponding taxes,

TCC or access the ePERA System to validate the authenticity of the PERA-TCC presented and tag it as CLAIMED in the Utilization Module- ePERA system. The Collection Section of the concerned RDO shall scan the QR code of the PERA

7. In the case of an employee contributor, the PERA-TCC shall be submitted to the employer for the latter to apply the gross amount of the PERA-TCC in the annual year-end adjustments for computing the net withholding tax due of the contributor- employee.

withheld (BIR FORM 23 16) of the employee-contributor. The submitted PERA-TCC of the employee/s shall be kept by the employer for future audit to be conducted by authorized BiR personnel. Further, the applicable details of the certificate shall be indicated in the column provided for the purpose in the prescribed Annual Alphabetical List of Employees, including the certificate of compensation payment/ tax withheld for compensation payment with or without tax

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8. A PERA-TCC shall only be printed once. However, upon written.request of the will revert back to the PERA-TCC balance available for utilization. contributor, for meritorious reasons, it can be re-printed and cancelled. Both request for re-printing and cancellation of PERA-TCC shall undergo the same approval process. In the case of approved request for cancellation, the amount of PERA-TCC

Each PERA-TCC utilization is automatically deducted from the tax credit balance once the concerned RDO tagged the particular PERA-TCC issued as "CLAIMED".

A report ledger per PERA-TCC is available for reference in the ePERA system. Each year's balance is stored separately and are not summed up as one tax credit balance.

10. Review and monitoring of remittance of penalties imposed on early withdrawal of PERA Administrators. distribution/termination of PERA contributions shall be based on the quarterly reports

1!. The following predetermined reports can be generated by authorized BIR personne! using the ePERA System in excel and PDF formats: b a. Alphalist of PERA Contributors List of Approved Report Submission

d List of Early Withdrawals List of Rejected Report Submissior

f e Report on PERA Contributions Report Ledger for Contribution/Withdrawal

h. g E List of Approved TCC Applications List of Rejected TCC Applications Report on PERA Distributions and Early Withdrawals PERA Tax Credit Certificate k X Report Ledger per Tax Credit Certificate User Master List

12. A qualified contributor who uses a spurious PERA-TCC shall be liable to pay the amount utilized with 50% penalty for fraud and 12% interest per annum, without prejudice to the filing of appropriate criminal charges.

13. All concerned Information Systems Group (ISG) Offices (i.e., Business Intelligence Processing Office and the concerned RDOs to ensure the proper dissemination of Division, Data Warehousing and Systems Operations Division, Administrative Systems Division, Network Management and Technical Support Division and Security Management Division) shall provide adequate support to the PERA data/information to the concerned offices and for the coordinated monitoring of the tax privileges and incentives granted under the PERA Act.

14. Pursuant to the pertinent provision in the National Internal Revenue Code of 1997 Memorandum of Agreement with Bangko Sentral ng Pilipinas (BSP), Data Privacy transactions shall be considered strictly confidential and shall be utilized exclusively for internal revenue tax purposes. Act and other related and applicable laws and regulations, all data pertaining to PERA

to any unauthorized personnel within and outside the Bureau. The heads of the concerned offices shall be responsible for all PERA data furnished/disseminated to their respective offices and the same shall not be divulged

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name of the Contributor is excluded from the prohibition, for regulatory purposes. imposition of administrative sanctions and filing of appropriate charges against the Any unauthorized disclosure by any revenue personnel shall be a ground for the erring official or employee. Any information that will not require disclosure of the

15. The attached User's Manual (Annex 'G") shall be used as reference of concerned BIR personnel/identified users who shall be given access to the said system.

IV. P:ROCEDURES

A. Office of the Assistant Commissioner, Assessment Service

Approve or reject processed application for the issuance of PERA-TCC through the Tax Credit- Application module of the ePERA system; and

2 Approve or reject processed request for the re-printing or cancellation of the PERA- TCC through the Tax Credits module of the ePERA system.

B. Audit Information Tax Exemption and Incentives Division (AITEID)

Approve or reject the reports submitted by the PERA Administrators within ten (10) days from date of submission;

Issue penalty notice to the concerned PERA Administrators in case of late or non- submission of reports as prompted by the ePERA system;

Process the application for PERA- TCC and request for cancellation or reprinting of PERA-TCC due to meritorious reason, as the case may be, submitted by the PERA Administrators.

E Prepare endorsement of PERA-TCC or reprinted PERA-TCC for approval of the

PERA-TCC Approver authorized by the Commissioner pursuant to a Revenue Delegation of Authority Order (RDAO);

Review the early withdrawal penalties computed by the PERA Administrators and over the PERA Administrator. However, if there is no error in the computation of deducted from the PERA withdrawn by the contributors. In case of erroneous computation, inform the PERA Administrators and the office which has jurisdiction penalties deducted from the contributor's PERA, validate from the said office if the penalties reflected in the report has been remitted by the PERA administrator; 6. Monitor on a quarterly basis all early withdrawal penalties deducted and inform the amounts deducted as penalties were remitted; and concerned Revenue District Office/ Large Taxpayer Regular Audit Division where the PERA Administrator is registered for their validation/verification if the same

Submit report of the List of PERA-TCC Applications approved every year to the top management on or before June 30 of the current year.

C. Concerned Revenue District Office/ Large Taxpayer Regular Audit Division where the PERA Administrator is registered

Receive from AITEID the amount of penalties deducted from the contributors based on the submitted report;

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Validate the payment on the settlement of the tax and penalties of the early withdrawal that does not fall within the circumstances enumerated under PERA Rule 14 of the and Rules and Regulations Implementing the PERA Act of 2008 forwarded by AITEID;

3 Provide feedback on the validation to the AITEID within ten (10) days from receipt.

D. Concerned Revenue District Office where the contributor is registered or where applicable return is filed by the qualified contributor

Collate the tax returns and attachments filed by the qualified contributors under their jurisdiction;

2 Scan the QR code or access the ePERA System to validate the authenticity of the

PERA- TCC;

3 Click the "CLAIM" button for the utilized PERA-TCC at the Utilization Details

Screen- ePERA System, to effect the status of PERA TCC as "CLAIMED" and

Send written notice to the qualified contributors for the collection of the tax deficiency and penalties, if any, by reason of wrongful computation of taxes or by reason of the use of spurious PERA-TCC.

E. Collection Service

Issue the specific policies and guidelines on the utilization of the PERA TCC by the Compensation Payment/Tax Withheld for Compensation Payment With or Without contributor classified as employee and the manner of its reporting by the employer in the Annual Alphabetical List of Employees/Payees from Whom Taxes Were Withheid -Alphalist (BIR Form No. 1604C) including the Certificate of Tax Withheld (BIR Form No. 23 16) and

Monitor the utilization of the PER A TCC of the qualified self-employed and overseas Filipino contributors, who have deducted the amounts of PERA TCCs in their tax returns, tagged as "CLAIMED" by the concerned RDO.

F. Information Systems Group

The Business Intelligence Division shali:

Maintain the application modules of ePERA and resolve any issues raised by the PERA Administrator and BIR users

2. Monitor and maintain data regarding PERA stored in the database:

3. Monitor and maintain the TIN Verification API

The Data Warehousing and Systems Operations Division shall:

Prepare Adhoc Report for the use of Top Management by extracting from Bureau's database relevant to the PERA-TCC utilization:

a)Deductions from the employees' income tax due based on the Alphalists submitted by employer and

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b)Tax returns (e.g Form No(s). 1700, 1701, 1706, 2000 etc.) which show 5% PERA-TCC availment under "Other Tax Credits/Payments (specify)" located immediately after the line item stating "Tax Due"; and

2 Maintain the ePERA system (i.e., user management, add/ update organization codes.

system schedules, tax types and system parameters) that will automatically extract the reports submitted by PERA Administrators through BSP PERASys and

The Network Management and Technical Support Division and Security Management Division) shall:

Y ePERA system; Set up and configure connectivity between BSP and BIR for the PERASys and

2 Provide the necessary support to the PERA Processing Office and other concerned offices relative to the connectivity of ePERA System and

Coordinate with other offices under the ISG that shall help in the provision of the necessary support as required under the preceding item.

V REPEALING CLAUSE

The pertinent provisions of RMO No. 42-2016, RMO 28-2017, RMO 11-2020 and all other revenue issuances and/or portions thereof that are inconsistent herewith are hereby repealed, amended or modified accordingly.

V. EFFECTIVITY

This Order shall take effect immediately

1eaMwo

I2 Commissioner of Internal Revenue CAESAR R. DULAY t 0.50 6 72

BUREAU OF INTERAA ts:

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