14/08/2026
๐๐๐ฅ ๐ฆ๐ง๐ฅ๐๐ก๐๐ง๐๐๐ก๐ฆ ๐ฃ๐๐ฅ๐ ๐ฅ๐จ๐๐๐ฆ ๐ง๐ข ๐ฃ๐ฅ๐ข๐ง๐๐๐ง ๐ฅ๐๐ง๐๐ฅ๐๐ ๐๐ก๐ง ๐ฆ๐๐ฉ๐๐ก๐๐ฆ, ๐ฆ๐จ๐ฃ๐ฃ๐ข๐ฅ๐ง ๐๐ก๐ฉ๐๐ฆ๐ง๐ข๐ฅ ๐๐๐๐ซ๐๐๐๐๐๐ง๐ฌ
The Bureau of Internal Revenue (BIR), through Revenue Memorandum Circular No. 91-2026 issued on August 11, 2026, clarified the rules on early withdrawals from Personal Equity and Retirement Accounts (PERA), providing clearer and fairer tax treatment while preserving PERA as a long-term retirement savings vehicle.
Under RMC No. 91-2026, the 20% Early Withdrawal Penalty (EWP) applies only to the gross income earned attributable to PERA assets actually withdrawn. Income, unrealized gains, and other PERA assets that remain invested are excluded from the penalty base. Proceeds from the sale or redemption of PERA investments that remain within the PERA custody account for reinvestment are likewise not considered an early withdrawal.
โSimply put, you can manage one part of your PERA without unnecessarily exposing the rest of your retirement portfolio to the early-withdrawal penalty. This gives investors more flexibility and greater certainty in managing their retirement savings,โ Commissioner Charlito Martin R. Mendoza said.
For partial withdrawals, the EWP applies only to the income attributable to the portion actually withdrawn. The investorโs other PERA sub-accounts and investments remain unaffected.
โFor investors, this means withdrawing from one part of your PERA will not unnecessarily affect the rest of your portfolio. The remaining PERA investments stay intact, while the 20% early-withdrawal penalty and the recovery of the 5% tax credit apply only to the assets actually withdrawn,โ Commissioner Mendoza said.
The RMC further clarifies the scope of PERA tax exemptions. Taxes not expressly covered by the PERA exemptionsโincluding stock transaction tax, value-added tax, documentary stamp tax, applicable percentage taxesโcontinue to apply under existing law. PERA administrators remain responsible for computing, withholding, reporting, and remitting the applicable EWP.
The clarification forms part of the BIR's taxpayer-centric approach to reform under BIR DARES, particularly its push for clearer rules, more predictable tax administration, and improved taxpayer service.
โThis is consistent with the direction of President Ferdinand R. Marcos Jr. and Finance Secretary Frederick Go to improve the ease of doing business and strengthen investor confidence. Under BIR DARES, we are reviewing our rules with a taxpayer-centric approachโclarifying requirements, removing unnecessary uncertainty, and making tax administration more predictable,โ Commissioner Mendoza said.
Read the full Revenue Memorandum Circular here:https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2091-2026%20corrected.pdf
