The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 003-2026 on Jan. 12, 2026, adding new Personal Equity Retirement Account (Pera) investment products to its accredited list. This update supplements earlier issuances — RMC 131-2016 and 30-2017 — and aims to provide more options for Filipinos saving for retirement.
Newly accredited Pera UITFs
EastWest Banking Corp. 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 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 P100,000 for Filipinos and P200,000 for overseas Filipino workers.
Tax benefits
• Contribution: A contributor is entitled to a five percent 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 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 Corp.’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