The CIR of the BIR has issued the RMC No. 091-2026 last July 28, 2026 with subject "Clarification of the Base Amount for the Imposition of the Twenty Percent (20%) Penalty Relative to the Early Withdrawal of Personal Equity and Retirement Account (PERA) Assets, and Accounts Classified as Unqualified, and Amending Certain Provisions of Revenue Memorandum Circular (RMC) No. 4-2023.
Pursuant to Section 10(C) of RR No. 17-2011, as amended, an EWP shall be imposed on any unqualified early withdrawal of PERA assets.
The EWP shall consist of the following:
1. Twenty percent (20%) of the Gross Income attributable to the PERA assets or portion of PERA assets withdrawn, calculated from the data of opening or creation of the relevant PERA account or sub-account up to the date of withdrawal; and
2. The recovery of any five percent (5%) tax credit previously availed of with respect to such withdrawn PERA assets for the entire period.
Only the Gross Income Earned attributable to PERA assets that are actually withdrawn shall be included in the EWP base. Any Gross Income Earned that remains invested, reinvested, or otherwise retained within the PERA - including unrealized gains and proceeds from the sale, redemption, or liquidation of PERA investment products that continue to be held under PERA custody - shall be excluded from the EWP base, as such amounts have not been subject to an early withdrawal.
Accordingly, the EWP shall apply only to the Gross Income attributable to the portion of PERA assets actually withdrawn and shall not affect other PERA accounts, sub-accounts, or investment product categories that remain intact. Any losses incurred in other PERA accounts or sub-accounts shall not be deductible from the Gross Income Earned attributable to the withdrawn PERA assets.
For the Definition of Terms and Illustrations, please read the full text of RMC No. 091-2026.
REFERENCE: Bureau of Internal Revenue (BIR) RMC No. 091-2026.
