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SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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'17 MAR-9 P3--04
SENATE
S.B. No. 
1382
Introduced by Senator SONNY ANGARA
AN ACT AMENDING SECTIONS 5 AND 8 OF REPUBLIC ACT (RA) NO. 9505, 
OTHERWISE KNOWN AS THE PERSONAL EQUITY AND RETIREMENT ACCOUNT 
(PERA) LAW  AND FOR OTHER PURPOSES
EXPLANATORY NOTE
In 2008, members of the 14th Congress deemed it practical and wise to enact 
Republic Act (RA) No. 9505 or the Personal Equity and Retirement Account (PERA) 
Act, a long-term savings plan designed to help Filipinos achieve a comfortable and 
financially secure retirement through planned savings and sound investment that enjoy 
tax incentives. It encourages Filipinos to save because PERA contributors are entitled 
to an income tax credit equivalent to five percent (5%) of the total PERA contribution 
while investment earnings from said PERA savings are tax-exempt. A private employer 
may also contribute to its employee’s PERA to the extent of the amount allowable and 
such contribution shall be allowed as deduction from the employer’s gross income.
The PERA law was envisioned to augment the retirement plan options available 
to Filipinos considering that during those years only a third of the population, or only 24 
million Filipinos out of the total 73 million Filipinos have retirement plans from either the 
Government Service Insurance System (GSIS), Social Security System (SSS) or the 
Pag-IBIG Fund. However, despite being passed almost a decade ago, the PERA law 
was formally launched just last December 16, 2016 by the Bangko Sentral ng Pilipinas 
(BSP).
This proposed bill makes the PERA a more attractive retirement plan for Filipinos 
by increasing the maximum allowed annual PERA contributions entitled to tax incentives 
from P I00,000 to P200,000, or up to P400,000 in case of Overseas Filipino Workers 
(OFWs). Moreover, instead of a five-percent (5%) income tax credit, this bill proposes to 
treat PERA contributions as deductions from gross income. It is hoped that such 
increase in the maximum prescribed contributions that can now be deducted from the 
Contributor’s gross income, more Filipinos would be encouraged to save and invest in 
PERA. Given this investment scheme, we are not only fostering savings mobilization but 
we are also promoting capital market development— two crucial factors in sustaining our 
economic growth.
In view of the foregoing, the passage of this bill is earnestly sought.
SONNY ANGARA


V
SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S B . No.
)
SENATE
1382
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’17 MAR-9 P3«4
RECEiVtDBV:
Introduced by Senator SONNY ANGARA
AN ACT AMENDING SECTIONS 5 AND 8 OF REPUBLIC ACT (RA) NO. 9505, 
OTHERWISE KNOWN AS THE PERSONAL EQUITY AND RETIREMENT ACCOUNT 
(PERA) LAW AND FOR OTHER PURPOSES
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Section 5 of Republic Act No. 9505 is hereby amended to read as follows:
“SEC. 5. M axim um  Annual PERA C ontributions. -  A Contributor may 
make an aggregate maximum contribution of [One] TWO hundred 
thousand pesos [(P100,000.00)] (P200,000.00) or its equivalent in any 
convertible foreign currency at the prevailing rate at the time of the actual 
contribution, to his/her PERA per year: Provided, That if the Contributor is 
married, each of the spouses shall be entitled to make a maximum 
contribution of [One] TWO hundred thousand pesos [(P100,000.00)] 
(P200,000.00) or its equivalent in any convertible foreign currency per 
year to his/her respective PERA Provided, further. That if the Contributor 
is an overseas Filipino, he shall be allowed to make maximum 
contributions double the allowable maximum amount.
A Contributor has the option to contribute more than the maximum amount 
prescribed herein: 
Provided, That the excess shall no longer be
ALLOW ED AS DEDUCTION FROM GROSS INCOME, AS PROVIDED 
IN SECTION 8 OF THIS ACT [entitled to a tax credit o f five percent 
(5%)].
The Secretary of Finance may adjust the maximum contribution from time 
to time, taking into consideration the present value of the said maximum 
contribution using the Consumer Price Index as published by the National


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Statistics Office, fiscal position of the government and other pertinent 
factors.”
SECTION 2. Section 8 of Republic Act No. 9505 is hereby amended to read as follows;
SEC. 8. Tax Treatm ent o f C o n trib u tio n s .- FOR INCOME TAX 
PURPOSES, PERA CONTRIBUTIONS UP TO THE MAXIMUM AMOUNT 
PRESCRIBED IN SECTION 5 OF THIS ACT SHALL BE ALLOWED AS 
DEDUCTIONS FROM GROSS INCOME OF EACH CONTRIBUTOR: 
PROVIDED, HOWEVER, THAT ANY EXCESS IN THE MAXIMUM 
AMOUNT SHALL NO LONGER BE ALLOW ED AS DEDUCTIONS 
THEREOF. [The Contributor shall be given an income tax credit 
equivalent to five percent (5%) of the total PERA contribution: Provided, 
however. That in no instance can there be any refund of the said tax credit 
arising from the PERA contributions. If the Contributor is an overseas 
Filipino, he shall be entitled to claim tax credit from any tax payable to the 
national government under the National Internal Revenue Code of 1997, 
as amended.]
SECTION 3. Implementing Rules and Regulations. The Bureau of Internal Revenue 
(BIR) shall issue the implementing rules and regulations regarding all aspects of tax 
administration 
relating 
to 
PERA: 
Provided, That 
individuals 
earning 
purely
compensation income, as defined in Section 32 (A)(1) of the National Internal Revenue 
Code (NIRC), as amended, derived from sources within the Philippines, the income tax 
on which has been correctly withheld under the provisions of Section 79 of the NIRC, as 
amended, and will be a Contributor to a PERA are still not required to file an income tax 
return but are subject to substituted filing: Provided further. That the BIR shall issue the 
necessary rules and regulations in relation to this matter such that correct taxes are 
withheld and/or collected: Provided finally. That the failure of the concerned agencies to 
promulgate the said rules and regulations shall not prevent the implementation of this 
Act upon its effectivity.
SECTION 4. Repealing Clause. All laws, orders, issuances, circulars, rules and 
regulations or parts thereof, which are inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly.


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SECTION 
5. 
Separability Clause. 
If any provision of this Act is declared 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall 
continue to be in full force and effect.
SECTION 6. Effectivity. This Act shall take effect on January 1, 2017 following its 
publication in at least two (2) newspapers of general circulation.
Approved,