Tax Alert No. 23 [Revenue Regulation (RR) No. 22-2025 dated 8 August 2025]

Further Amending Pertinent Provisions of Revenue Regulations 17-2011 to Implement Section 9 of Republic Act (RA) No. 12214, Otherwise Known as the Capital Markets Efficiency Promotion Act, on Additional Deduction of Qualified Employer's Actual Contributions Made to Personal Equity and Retirement Account (PERA) Under RA No. 9505, Otherwise Known as the "PERA Act of 2008" 

Please be informed that the BIR issued Revenue Regulation (RR) No. 22-2025 on 8 August 2025 in relation to Section 9 of Republic Act (RA) No. 12214, otherwise known as CMEPA, on additional deduction of qualified employer's actual contributions made to Personal Equity and Retirement Account (PERA) Under RA No. 9505, otherwise known as the PERA Act of 2008.  

These Regulations shall cover qualified employer's actual contribution made to PERA on July 1, 2025 onwards. 

The employer can claim the actual amount of Qualified Employer’s Contribution as a deduction from its gross income, but only to the extent of the employer’s contribution that would complete the maximum allowable PERA contribution of an employee. 

Further, private employers who make voluntary contributions to their employees' PERA shall be entitled to an additional 50%  deduction from their gross income, provided that the following conditions are met: 

1. Private employers must contribute an amount at least equal to the contributions of their employees, subject to the maximum allowable contributions; and 
2. Only private employers that contribute to ALL of their employees' PERA shall be eligible to the additional allowable deduction. 

To meet condition (a), the employee must also contribute to PERA within the same calendar year. 

The Qualified Employer's Contribution, to the extent that it is allowable as deduction from gross income, shall likewise be exempt from withholding tax on compensation. For this purpose, the Administrator shall issue a certificate of the actual amount of Qualified Employer's Contributions to the employer.   

For purposes of recording the employer's contribution corresponding to its share in the qualified employee's PERA, allowable as a deductible expense from gross income, the account shall be designated as Share in Qualified Employee's PERA Contribution 

Full disclosure of the details of the share of the employer to employees' PERA shall be part of the Notes to Financial Statements. 

You may access the full version of the RMC through the BIR website.

For any inquiry or request for assistance, please feel free to contact anyone from our Tax Services group. You may also reach us through this link