REVENUE REGULATIONS NO. 10-2016 issued on December 27, 2016 amends Section
10.C. of Revenue Regulations (RR) No. 17-2011, which implements the early withdrawal
penalty of Republic Act (RA) No. 9505, otherwise known as the “Personal Equity and
Retirement Account (PERA) Act of 2008.”
In case of early withdrawals not falling under any of the circumstances under Section 10
(B) of RR No. 17-2011, the Contributor shall pay the following early withdrawal penalties:
a. The five percent (5%) tax credit availed by the Contributor for the entire period of the
PERA;
b. 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.
The administrator shall fully disclose to the Contributor the said penalties arising from
early withdrawals prior to account opening.