PERA Law: Filipinos Should Be Prepared For More Salary Deductions

PERA Law is a crucial topic now on whether it would be a benefit or a disadvantage.

PERA Law – The Personal Equity and Retirement Account or Republic Act 9505 has long been pushed by Finance Secretary Carlos Dominguez III as one of his prime priorities since the newly seated President Rodrigo Roa Duterte assumed the post.

Phil Star Global recently released a report that through the Revenue Memorandum Order 42 series of 2016, the PERA Law is almost coming very soon.

Finally, the Bureau of Internal Revenue gave the signal to push for this savings account which was first raised in 2008.

According to BIR Commissioner Kim Henares, she did not sign right away the PERA to avoid confusions in payments for income tax. She cleared that even though it is taking into action, administrators should apply in Bangko Sentral ng Pilipinas to make a PERA account possible.

The report stated that one person is only permitted to have a maximum of five accounts worth P200,000 in totality. This new savings scheme will eventually pave its way to the top ahead the current saving programs – Social Security System and Government Service Insurance System.

(Continue on the next page to see how much it will cost…)

Leave a Comment