Wednesday, May 18, 2011

PERA to the People

A few weeks ago I posted news about the approval of the implementing rules of the REIT law. There's more good news, the PERA (Personal Equity and Retirement Account) Act revenue rules are going to be released soon. The PERA Act (Republic Act 9505) aims to encourage Filipinos to save for retirement. Here's a PDF of the full text.

Some of the interesting features are:
1. Employers may choose (it is not required) to make contributions to employees' PERA. They are still required to make SSS contributions.
2. Those who avail of the PERA receive a tax credit equivalent to 5% of their PERA contribution. Save money and save on taxes.
3. Income from PERA is tax-exempt.

I hope the number of investment options of common Filipinos keeps growing.

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