RR No. 22-2025 — Further Amending Pertinent Provisions of Revenue Regulations 17-2011 to Implement Section 9 of Republic Act (RA) No. 12214, Otherwise Known as the "Capital Markets Efficiency Promotion Act", on Additional Deduction of Qualified Employer's Actual Contributions Made to Personal Equity and Retirement Acccount (PERA) Under RA No. 9505, Otherwise Known as the "PERA Act of 2008" (Date P

BUREAU OF INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building AUG 08 2025 PILIPINAS BAGONG

REVENUE REGULATIONS NO.022-2025

SUBJECT: Further Amending Pertinent Provisions of Revenue Regulations 7-201l to

Implement Section 9 of Republic Act RA No.122|4,Otherwise Known as the Employer's Actual Contributions Made to Personal Equity and Retirement Account Capital Markets Efficiency Promotion Acton Additional Deducrion of Qualified (PERAUnder RA No.9505.Otherwise Known as thePERA Act of 2008

TO All Internal Revenue Officers and Others Concerned

known as the Capital Markets Efficiency Promotion Act (CMEPAthese Regulations are hereby known as the PERA Act of 2008 SECTION 1.SCOPE.-Pursuant to Sections 244 and 245 of the NationalInternal Revenue Code of promulgated to further amend Section 7B of Revenue RegulationsRR No.17-2011 hy revising to employee's Personal Equity and Retirement Account PERA under RA No.9505.otherwise 1997.as amended Tax Code.in relation to Section 9 of Republic ActRA No.12214 otherwise guidelines on the allowed deduction which the employer may claim from his/its qualified contribution

SECTiON 2.COVERAGE-These Regulations shall cover qualified employer's actual contribution made to PERA on July 1.2025 onwards

SECTION 3. ADDITIONAL DEDUCTION FROM GROSS INCOME FOR PRIVATE EMPLOYERS THAT CONTRIBUTE TO PERA-Section 7(BIIof RR No.17-201is hereby amended to read as follows:

"Section 7.PERA Contributions and Tax Credit.

A.Contributor's Qualified PERA Contribution

XXX

B. Qualified Employer's Contribution to the Emplovee's PERA

XXX 1On the part of the employee-xxx

SUREAUOFINTERNALREVENUE SENC DS MANAGEMENTDIMISION Il. On the part of the employer -- The employer cum claim the the emplover's contribution that would complete the actual amount of is Oualified Emplover's Contributiom as a deduction from its gross income, but only to the extent of

EN S maximum allowable PERA contribution of an employee AUG 08 2025 Furiher. privateemplovers whomakevoluntary

By. ADMIN UNIT TIME 33 am additional deduction from their gross income equivalent to fifry percent (50%)of the amount contributed.subieci to contributions to their emplovees"PERA shall be entitled to the following condirions:

BIR National Office BldgSenator Miriam Defensor-Santiago Avenue,DilimanQuezon City Trunkline:8981-7000 8929-7676 Website:www.bir.gov.pn

tar Private employers must contribute cm amoumt at least the maximum allowahle contribution under RR No.17- 20H,as amended by RR No.7-2023:and equal to the contrihutions oftheir employees.subject to

th Onty private employers tha contrihute to all of their employees PERA shall be eligible to the additional allowable deduction

To determine that the condition stated in Il (a above is me the emplovee must also hne conributed to PERA within the same calendar vear.

be exempi from withholding tax on compensation For this purpose, the Administrator shall issue to the emplover a Contributions. is allowable as deduction from gross income,shall likewise ceriificate of the actual amoumt of Qualified Emplover's The Oualified Emplover's Conributionto the extent that it

BUREAUOFINTFRNAIRENF RECORDSMANA AUG 08 2025 DiIM Sta For purposes of recording the emplover's eontribution corresponding to its share in the qualified emplovee's PERA allowable as a deductible expense from gross income, the Emplovee's PERA Contribution account shall be designated as Shure in Qualified

BY ADMINUNIT- TIME: 23 Full disclosure of the details of the share of the emplover to the emploveesPERA Contribuion shall be parr of the Notes to Financial Statements.

ILLUSTRATION:

Given:

Employee is P200.000.00 per year under RR No.17-2011.as amended by RR No.7-2023 ABC Company has five (5 employees enrolled with PERA. The maximum contribution for an

Employee Total No. A C 3 4 5 * Contribution 370,000.00 Emplovee's 180.000.00 20,000.00 100.000.00 70,000.00 to PERA Own B 430,000.00 Share after ofCMEPA Employer's 100,000.00 180,000.00 50000.00 effectivity 50,000.00 $0.000.00 C per RR No.7 qualified for contributios Contribution 640,000.00 TotalPERA 200,000.00 200,000.00 Certificate 120,000.00 maximum 70.000.00 50,000.00 5% Tax allowed (up to Credit 2023 D 270.000.00 Emplover's deductible PERA ACE 100.000.00 50,000.00 20,000,00 50,000.00 50,000.00 share per G Deduction from Gross Income Employer's Share Allowed for Additional 85.000.00 Amount of deduction 25.000.00 10,000.00 50.000.00 CMEPA Allowed under None None H 355,000.00 Deduction 150.000.00 50,000.00 50.000.00 30,000.00 75.000.00 to Gross Allowed Income Total 1

2

In the above illustration ABC Company is entited to the one hundred percent 100% deduction from its gross income for the contributions made to the PERA of Employee Nos,1.2.and 3 under PERA Act of 2008.Furthermore.pursuant to Section 34(M ot the Tax Code.as amended by Section 9ol CMEPA.ABC Company is entitled to an additional deduction equivalent to fifty percent (50% of its PERA contributions for Employee Nos.l and 2 only.While ABC Company is not eligible for the additional fifty percent (50deducrion for its contributions for Employee No.3.since the amount it contributed is less than the amount contributed by the employee,it remains entitled to the one hundred percent100%deduetion for said contributions to the employee s PERA under PERA Act of 2008

With respect to Employee No,4, ABC Company qualifies for both the one hundred percent 100% deduction and the additional fifiy percent 50% deducrion.but these deductions are limited to the amount necessary fo complete the employee's maxinum allowable PE RA contribution of P200.000.00.as prescribed under existing revenue regulations Accordingly.the computatior of both deductions is based on the P20.000.00 contributed by the company.which completes the employee's allowable contribution threshold.

Finally.with respect to Employee No.5.ABCCompany is entitled to the one hondred percent100% deduction for its PERA contribution under PERA Act of 2008.It may also qualify for the additional filty percent (50% deduction.provided that the employee makes a qualified contribution to PERA within the same calendar year and the company's contribution is at least cqual or greater than the employee's contribution.

SECTION 4.SEPARABILITY CLAUSE-If any of the provisions of these Regulations is subsequently declared invalid or unconstitutional.the validiry of the remaining provisions hereof shall remain in full force and effect

SECTION 5.REPEALING CLAUSE -AIl other issuances and rnles and regulations or parts thereof which are contrary to and inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordinghy.

SECTION 6.EFFECTIVITY-These Regulations shall take effect fifteen (15days following its publication in the Official Gazette or the BIR Official Websitewhichever comes first.

RAIPHG.RE Yee c

Recommending Approval

ROMO4 Ossioner of Intenial Revenue LUMAQM.JR. RECORDS MANAGEPENTOHISION UREAUOFINTERNALRFVFNL

AUG 0 8 2025

BY ADMIN UNIT TIME: 33

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