The Revenue Regulations (RR) No. 10-2016 dated December 27, 2016 has issued by the bureau recently amending Section 10.C. of RR No. 17-2001 Implementing the Early Withdrawal Penalty of Republic Act No. 9505, Otherwise Known as the Personal Equity and Retirement Account (PERA) Act of 2008.
The amendment shall read as follows:
SECTION 2. Amendment.
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Section 10.C. of RR No. 17-2011 is hereby amended
to read as follows:
"SECTION 10. PERA Distributions and Early Withdrawals.
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XXX XXX XXX
C. Imposition of Penalty. -- In case of Early Withdrawals not failing under any of
the circumstances under Section 10 (B) above, the Contributor shall pay the following
Early Withdrawal Penalties:
(1) The five percent (5%) tax credit availed by the Contributors for the entire period of the PERA;
(2) A flat rate of twenty percent (20%) based on the total income earned by said account from the time of its opening/creation up to the time of withdrawal.
For full transparency, the Administrator shall fully disclose the above penalty arising from withdrawals to the contributor prior to account opening and shall likewise submit a quarterly report of such termination or withdrawal to the PERA Processing Office, within sixty (60) days following the end of the quarter of the date of termination or withdrawal.
Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202016/RR%20No.%2010-2016.pdf of the full text of RR No. 10-2016.
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