The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 94-2026 to provide additional guidelines on the utilization of Personal Equity and Retirement Account Tax Credit Certificates (Pera TCCs). The Circular addresses common questions relating to the processing, release, validity, application, and monitoring of Pera TCCs under Republic Act No. 9505, otherwise known as the Personal Equity and Retirement Account (Pera) Act of 2008.
Under the Circular, a Pera contributor is entitled to a tax credit equivalent to five percent of the total qualified Pera contributions made during a given year. The Pera Administrator is required to electronically submit Pera TCC applications on behalf of Pera contributors within 60 days from the end of each calendar year through the Bangko Sentral ng Pilipinas Pera System (PeraSys), which is interconnected in real time with the BIR ePera System for processing and approval.
Once approved, the Pera TCC becomes available in PeraSys for distribution to the contributor. Upon the contributor’s written request for utilization, the Pera Administrator may either generate and issue the Pera TCC physically to the contributor or authorized representative or send it in PDF format to the contributor’s official email address.
The circular also provides the following clarifications:
• Pera TCCs issued on or after July 27, 2023, are valid for five years from the date appearing on the certificate, pursuant to Revenue Regulations 7-2023;
• A Pera contributor may choose to utilize only a portion of the available Pera tax credit;
• Any amount of Pera TCC in excess of the tax due reported in the tax return of an overseas Filipino or self-employed contributor shall be forfeited in favor of the government;
• Unclaimed or unutilized Pera TCCs of a deceased contributor are not transferable and may not be applied against estate tax due;
• Printed and released Pera TCCs may be considered utilized for purposes of computing early withdrawal penalties if the contributor withdraws or terminates the Pera before the allowable period unless proven otherwise; and
• The concerned Revenue District Offices (RDOs) shall validate Pera TCCs through the QR code or the BIR ePERA System and tag utilized certificates as “Claimed.”
RMC 94-2026 further sets out filing, payment, and attachment submission procedures for employee, self-employed, individual business, and overseas Filipino Pera contributors. Depending on the contributor type and applicable tax return, the PeraTCC may be applied through year-end withholding adjustments, indicated as “Five Percent Pera TCC” under other tax credits or payments, or reflected in the applicable payment details portion of the tax return.
The BIR also reminds taxpayers to use the latest Offline eBIR Forms or eFPS facility, as applicable, and to submit the required attachments, including the Pera TCC, through the prescribed electronic or manual channels. For annual income tax returns filed electronically, the Filing Reference Number (FRN) of the Tax Return Receipt Confirmation shall serve as proof of filing.
RMC 94-2026 took effect immediately upon issuance.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants