How does it work
You, as a contributor, will appoint BDO as your PERA Administrator and a third-party as your Custodian/s.
BDO as your PERA Administrator will set up your PERA and coordinate with your Custodian/s and Product Provider/s to carry out your investment instructions.
The PERA Administrator will oversee and maintain your PERA until its final distribution.
Enjoy the following benefits
Higher potential for your money to grow more and faster.
Tax Credit Certificates
You get yearly tax credits equivalent to 5% of your annual contributions.
Estate Tax Exemption
In an unfortunate case of death, distribution of your PERA to your beneficiaries are free of tax.
PERA Contributor requirements
Start planning for your retirement by investing in PERA today
Frequently Asked Questions
The Contributor can contribute for as low as 1000 or as may be set by the specific Product Provider but following maximum annual qualified contributions set under the law:
• Locally employed
|₱200,000 per calendar year|
|Overseas Filipino (OF)||₱400,000 per calendar year|
Contributions to the PERA amounting to more than ₱200,000 or ₱400,000, as the case may be, shall not be accepted by the Administrator under the PERA.
Employers who also contribute to its employee’s PERA may do up to the extent of the maximum annual qualified contribution. The annual limit is shared if both the Employer and Employee pay the contributions in PERA.
|Local PERA Contributor
A Filipino citizen who is working or deriving income from the Philippines.
|- An Employed Individual receiving purely compensation income from an employer.
- A Self-employed Individual deriving income from the conduct of trade or business and/or practice of profession.
|OF PERA Contributor||- An individual citizen of the Philippines who is working or deriving income from abroad.
- An individual who retained or reacquired his Philippine citizenship under RA 9225 (Citizenship Retention and Reacquisition Act of 2003) and is working or deriving income from abroad.
All you need is a BDO Savings/Checking enrolled in BDO Online Banking to open a PERA and follow these steps:
• Log-in to your BDO Personal Online Banking account
• Access BDO Invest Online
• Click on PERA Initial Opening and follow the steps beginning with PERA eLearning.
For Locally Employed Filipinos have a copy of your latest Income Tax Return (ITR) on hand as reference for the following:
- Employer's TIN
- Employer's Name
The law requires that PERA shall be invested solely in Qualified/Eligible PERA Investment Products duly approved by the concerned Regulatory Authority.
The PERA Contributor can choose to invest up to a maximum of 5 of these PERA Investment Product Category:
a. unit investment trust funds
b. mutual funds
c. annuity contracts
d. insurance pension products
e. pre-need pension plans
f. shares of stock or other securities listed and traded in the local stock exchange
g. exchange-traded bonds
h. government securities
i. any other category of investment products or outlets which the concerned Regulatory Authority may allow for PERA purposes
The major PERA participants are the following:
||An entity which has been pre-qualified by the concerned Regulatory Authority (BSP, SEC or IC) and accredited by the Bureau of Internal Revenue (BIR), and is responsible for administering and overseeing the PERA of the Contributor.||✔|
||A separate and distinct entity unrelated to the Administrator, accredited by the BSP to take custody of PERA assets. PERA Custodians are classified as Cash Custodians and Securities Custodians.
- Cash Custodian- receives all funds in connection with the PERA; receives instructions from the Administrator with regard to the custody and disposition of all PERA funds and reports to the Contributor, the Administrator and the concerned Regulatory Authority all PERA financial transactions and funds.
- Securities Custodian - maintains custody of all securities, evidence of deposits or investment; receives instructions from the Administrator with regard to the custody and disposition of non-cash PERA assets; and reports to the Contributor, the Administrator and the concerned Regulatory Authority all PERA financial transactions and funds.
||An entity that provides and sells accredited PERA investment products||✔|
||A regulated entity accredited by the concerned Regulatory Authority and authorized by the Contributor, pursuant to a written investment management agreement, to make investment decisions for his PERA.|
BDO was the first institution in the country to be given approval to become a PERA Administrator, after hurdling the pre-qualification requirements by BSP and being accredited by the BIR. Our functions as a PERA Administrator are as follows:
- Educate and inculcate financial literacy in the Contributor
- Open the PERA account/s in the name of the Contributor
- Receive and record cash contributions from the Contributor for investment in PERA products
- Implement the Contributor’s and/or his Investment Manager’s instructions on where to invest the PERA funds
- Ensure PERA contributions are invested and reinvested
- Observe PERA contribution limits for tax purpose and enforce withdrawal limits
- Report to BIR and the Contributor the PERA contributions and withdrawals
- Compute the values of investments and report them to the Contributor, the concerned Regulatory Authority and the BIR
- Custodize cash and securities comprising the PERA with the custodian
- Apply for BIR Income Tax Credit Certificates for the Contributor
- Ensure taxes and penalties relative to PERA are paid to the government
- Keep and consolidate records of all contributions, investments, earnings, expenses and withdrawals from the PERA, the valuations of the PERA assets and make regular reports to the Contributor and concerned Regulatory Authority
BDO as your PERA Administrator will automatically submit to the Bureau of Internal Revenue (BIR) the application for your PERA TCC within sixty (60) days from the end of each calendar year. You will be notified once your PERA TCC has been approved by the BIR and is available for distribution.
It is recommended for you to make sure that your details with BIR are updated since these will be crucial when you utilize your PERA TCC (ex. change of civil status, name format, birthdate, etc.).
The primary purpose of PERA is for the individual Contributor to do a long-term retirement planning preparation. Thus, the full benefits of PERA can only be availed during a qualified withdrawal where the PERA contributor has already reached at least 55 years old and has contributed at least five (5) years to his PERA but not necessarily in consecutive years. In BDO, we originally termed this as the 55 and 5 rule.
As such, any withdrawal prior to the satisfaction of the 55 and 5 rule will be considered as an early withdrawal to PERA subject to the following penalties:
- The five percent (5%) tax credit given to the Contributor for the entire period of the PERA;
- A flat rate of twenty percent (20%) based on the total income earned by said account from the time of its opening/creation up to the time of withdrawal.
However, early withdrawals due to the following are EXEMPT from penalties:
- Withdrawal proceeds are transferred to another PERA Investment Product Provider and/or another PERA Administrator
- Accident or illness-related hospitalization expenses in excess of 30 days (should present a notarized doctor’s certificate.)
- Total Permanent Disability (should present a certification from the pertinent government agency that the Contributor has been subsequently rendered permanently totally disabled)
- Distribution of withdrawal proceeds to beneficiary/ies in case of Contributor’s death
To withdraw your PERA investments and terminate your PERA, you will need to fill-out and submit the PERA Notice of Withdrawal/Termination form to your BDO Branch of Account and they will take care of forwarding this to BDO Trust. You will also need to sign the PERA Quitclaim form after we have rendered the final accounting of your PERA for the release of the PERA proceeds.
Please send an email to email@example.com and we will provide the forms and instructions.
Per Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) 103-2020, OFs can submit the application for Taxpayer Identification Number (TIN) either:
• Manually through an authorized representative; OR
• By the OF himself/herself via electronic mail (email)
|What are the requirements?
||Submit the following documents :
1. BIR Form No. 1904 (2 originals)
2. Any government-issued ID (1 photocopy)
3. Marriage contract, for married female (1 photocopy)
4. Special Power of Attorney (SPA)
5. Any government-issued ID of the authorized representative (1 photocopy)
6. For First Time Job Seeker – Barangay certification that the applicant is a resident of the barangay and is a first time job seeker (1 certified true copy)
|Submit scanned copies of the following documents:
1. Duly accomplished and signed BIR Form No. 1904 (Annex A);
2. Passport (Bio page include date of exit/departure stamp if applicable)
3. In lieu of Special Power of Attorney, as proof of absence in the country and account opening with banks, Overseas Employment Certificate (OEC) issued by the Philippine Overseas Employment Administration (POEA); or any official document showing that he will earn or has earned income in a foreign country in the year of PERA contribution;
4. In case of legitimate spouse of the Overseas Filipino, the marriage certificate shall be submitted in addition to items from 1 to 3 mentioned above.
|Where to submit?
||The application of TIN shall be filed at the Revenue District Office (RDO) No. 39 South Quezon City||Email the application at firstname.lastname@example.org|
|What is proof of registration?
||NO TIN card will be issued.
BIR Form No. 1904 duly stamped and received indicating the TIN issued shall serve as proof of registration
|NO TIN card will be issued.
The acknowledgement receipt/reply to the email is sufficient proof of receipt of such application.
You are initially allowed to contribute a maximum of ₱200,000 annually. For the year that you would like to increase your maximum annual contribution to ₱400,000, kindly submit any of the following:
a. Overseas Employment Certificate (OEC) issued by the Philippine Overseas Employment Agency (POEA)
b. Current employment certificate from existing employer
c. Original copy/certified true copy of existing employment contract
d. Valid employment identification card issued by the employer abroad
e. Copy of work permit/ visa or re-entry permit
f. Sworn certificate made before a Philippine Consul
For married Overseas Filipinos (OFs) who cannot directly open a PERA via the digital channel, his/her legitimate spouse or child based in the Philippines may represent him/her in opening a PERA at the BDO-TIG head office.
BDO Towers Valero
8741 Paseo De Roxas Makati City 1226 Philippines
This channel is dedicated to handling inquiries and concerns related to the following:
- Unit Investment Trust Funds (UITFs)
- Easy Investment Plan (EIP)
- Personal Equity and Retirement Account (PERA)
- Investment Management/Trust Accounts (IMA/TA)
- Trust Invest Online