REVENUE MEMORANDUM CIRCULAR (RMC) NO. 94-2026
This circular provides additional guidelines on the processing, release, validity, application, and monitoring of PERA Tax Credit Certificates (TCCs). It clarifies the procedures that qualified PERA contributors should observe when obtaining and utilizing their tax credit.
How much is the equivalent Tax Credit on PERA Contributions?
A qualified PERA contributor may avail of a tax credit equivalent to 5% of the total qualified PERA contributions made during the year.
Who submits the application for the PERA TCC?
The PERA Administrator submits the PERA TCC application electronically on behalf of the contributor. The application must be submitted within 60 days from the end of each calendar year through the BSP’s PERA System (PERASys), which is interconnected with the BIR’s ePERA System.
How will the contributor receive the approved TCC?
Once approved, the PERA TCC becomes available through PERASys. Upon the contributor’s written request for utilization, the PERA Administrator may:
- issue the TCC physically to the contributor or authorized representative; or
- send a PDF copy to the contributor’s official email address.
How long may a PERA TCC be used?
PERA TCCs issued on or after July 27, 2023, are valid for five (5) years from the date appearing on the certificate, pursuant to Revenue Regulations (RR) No. 7-2023.
Does the contributor have to use the entire TCC at once?
No. RMC No. 94-2026 clarifies that a contributor may utilize only a portion of the available PERA tax credit.
This allows the amount of tax credit utilized to be aligned with the contributor’s applicable tax liability.
What happens if the TCC exceeds the tax due?
The treatment of excess tax credit depends on the contributor’s classification.
For self-employed and overseas Filipino contributors, any amount of the PERA TCC in excess of the tax due reported in the applicable tax return shall be forfeited in favor of the Government.
How is the TCC applied by an employee contributor?
For qualified employee contributors, the PERA TCC may be applied by the employer through the year-end adjustment of withholding tax. Where applicable, the TCC may affect the employee’s final income tax liability for the taxable year. RMC No. 94-2026 also provides rules concerning the treatment of excess credits for employee contributors.
How is the TCC reported by other contributors?
RMC No. 94-2026 provides specific procedures depending on the contributor’s classification, including self-employed individuals, individual businesses, and overseas Filipino contributors.
Depending on the applicable return, the PERA tax credit may be reflected as “5% PERA TCC” under Other Tax Credits/Payments or in the appropriate payment details of the return.
How will the BIR verify the PERA TCC?
The concerned Revenue District Office (RDO) may validate the TCC through its QR code or through the BIR ePERA System. Once the tax credit has been utilized, the corresponding certificate is tagged as “CLAIMED” for monitoring purposes.
What if the PERA account is withdrawn or terminated early?
A printed and released PERA TCC may be considered utilized for purposes of computing the applicable early-withdrawal penalty when the PERA account is withdrawn or terminated before the allowable period, unless proven otherwise.
What should taxpayers remember when filing?
Taxpayers should use the latest applicable Offline eBIRForms or eFPS facility and submit the required supporting documents, including the PERA TCC, through the prescribed submission channels.
For electronically filed annual income tax returns, the Filing Reference Number (FRN) indicated in the Tax Return Receipt Confirmation serves as proof of filing.
Summary of key points
| Matter | Guidelines under RMC No. 94-2026 |
| Tax Credit | 5% of qualified PERA contributor |
| TCC Application | Submitted electronically by the PERA Administrator |
| Application Period | Within 60 days from the end of the calendar year |
| Validity | 5 years for TCCs issued on or after July 27, 2023 |
| Partial Utilization | Allowed |
| Employee Contributors | May be applied through year-end withholding adjustment |
| Self-Employed/OFW | Excess over tax due is forefeited in favor of the Government |
| Validation | QR code or BIR ePERA System |
| Deceased Contributor | TCC is non-transferable and cannot be applied against estate tax |
| Early Withdrawal | Released TCC may be considered utilized for penalty computation, unless proven otherwise |
| Effectivity | Immediately upon issuance |