Revenue Regulations No. 22-2025 – 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”

SECTION 1. SCOPE – Pursuant to Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code), in relation to Section 9 of Republic Act (RA) No. 12214 otherwise known as the Capital Markets Efficiency Promotion Act (CMEPA), these Regulations are hereby promulgated to further amend Section 7(B) of Revenue Regulations (RR) No. 17-2011 by revising guidelines on the allowed deduction which the employer may claim from his/its qualified contribution to employee’s Personal Equity and Retirement Account (PERA) under RA No. 9505, otherwise known as the PERA Act of 2008.

SECTION 2. COVERAGE. – These Regulations shall cover qualified employer’s actual contribution made to PERA on July 1, 2025 onwards.

SECTION 3. ADDITIONAL DEDUCTION FROM GROSS INCOME FOR PRIVATE EMPLOYERS THAT CONTRIBUTE TO PERA – Section 7(B)(II) of RR No. 17-2011, is hereby amended to read as follows:

In the above illustration, ABC Company is entitled to the one hundred percent (100%) deduction from its gross income for the contributions made to the PERA of Employee Nos. 1, 2, and 3 under PERA Act of 2008. Furthermore, pursuant to Section 34(M) of the Tax Code, as amended by Section 9 of CMEPA, ABC Company is entitled to an additional deduction equivalent to fifty percent (50%) of its PERA contributions for Employee Nos. 1 and 2 only. While ABC Company is not eligible for the additional fifty percent (50%) deduction for its contributions for Employee No. 3. since the amount it contributed is less than the amount contributed is less than the amount contributed by the employee, it remains entitled to the one hundred percent (100%) deduction for said contributions to the employee’s PERA under PERA Act of 2008.

With respect to Employee No. 4, ABC Company qualifies for both the one hundred percent (100%) deduction and the additional fifty percent (50%) deduction, but these deductions are limited to the amount necessary to complete the employee’s maximum allowable PERA contribution of P200,000.00, as prescribed under existing revenue regulations. Accordingly, the computation of both deductions is based on the P20,000.00 contributed by the company, which completes the employee’s allowable contribution threshold.

Finally, with respect to Employee No. 5. ABC Company is entitled to the one hundred percent (100%) deduction for its PERA contribution under PERA Act of 2008. It may also qualify for the additional fifty percent (50%) deduction, provided that the employee makes a qualified contribution to PERA within the same calendar year, and the company’s contribution is at least equal or greater than the employee’s contribution.

SECTION 4. SEPARABILITY CLAUSE – If any of the provisions of these Regulations is subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect.

SECTION 5. REPEALING CLAUSE – All other issuances and rules and regulations or parts thereof which are contrary to and inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly.