REVENUE MEMORANDUM CIRCULAR NO. 4-2023 issued on January 10, 2023 clarifies the base amount for the imposition of the twenty percent (20%) penalty relative to the early withdrawal of Personal Equity and Retirement Account (PERA) for assets, accounts and sub-accounts classified as unqualified.
          Pursuant to Section 10(C) of Revenue Regulations (RR) No. 17-2011, the early withdrawal penalty, composed of the 20% of the gross income earned by the PERA for the entire duration and the 5% tax credit availed, shall be imposed on any early withdrawal not within the circumstances enumerated under Section 10 (B) of the aforesaid regulations. Any loss incurred on PERA sub-accounts shall not be deducted from the gross income earned. Under “unqualified early withdrawal”, the withdrawal of a sub-account will result to the automatic termination of all other sub-accounts. An illustration on the computation of Early Withdrawal Penalty (EWP) and PERA proceeds upon termination of the account is provided in the Circular.
             For the purpose of the Regulation, it is reiterated that the PERA Administrator shall be responsible for administering, overseeing and maintaining of accounts/sub-accounts of the contributor’s PERA; and shall compute and withhold the EWP from the proceeds due to the contributor, consistent with the above provisions, for reporting and remittance to the BIR pursuant to RR No. 2-2022 and Revenue Memorandum Circular No. 45-2022.                
             By making the BIR Citizen’s Charter interactive, navigation and access to its contents are made easier on the part of the taxpayers/other users and, at the same time, updating of its contents is also made easier on the part of the BIR Content Owners.
          A Revenue Memorandum Order shall be issued to prescribe the policies and responsibilities of identified BIR offices (Content Owners) to implement the regular updating of information posted in the Interactive BIR Citizen’s Chart .