The Bureau of Internal Revenue (BIR) has issued Revenue Regulation 22-2025 to revise guidelines implementing Capital Market Efficiency Promotion Act (CMEPA) on the additional allowed deduction which a qualified employer may claim from its qualified actual contribution made to employee’s Personal Equity and Retirement Account (PERA) from July 1, 2025, onwards.
The employer can claim the actual amount of its qualified employer’s contribution as deduction from its gross income which shall not exceed 200,000 per calendar year if the contributor is a Non-overseas Filipino, or 400,000 per calendar year if the contributor is an Overseas Filipino or in representation of an Overseas Filipino. Private Employers who make voluntary contributions to their employees’ PERA shall be entitled to an additional deduction from their gross income equivalent to fifty percent (50 percent) of the amount contributed, subject to the following conditions:
Private employers must contribute at least equal to the employees’ contributions, subject to the maximum allowable amount.
Only private employers that contribute to all their eligible employees’ PERA shall be entitled to the additional allowable deduction.
Additionally, employees must also contribute to PERA within the same calendar year. The Administrator shall issue to the employer a Certificate of the Actual Amount of Qualified Employer’s Contributions to be exempt from withholding tax on compensation. The account shall be designated as ‘Share in Qualified Employee’s PERA Contribution’ for the purposes of recording. Finally, full disclosure shall be part of the Notes to Financial Statements.
Source:
P&A Grant Thornton
Certified Public Accountants