I. On the part of the employee – xxx

II. On the part of the employer – The employer can claim the actual amount of its Qualified Employer’s Contribution as a deduction from its gross income, but only to the extent of the employer’s contribution that would complete the maximum allowable PERA contribution of an employee.

Further, private employers, who made voluntary contributions to their employee’s PERA shall be entitled to an additional deduction from their gross income equivalent to fifty percent (50%) of the amount contributed, subject to the following conditions:

(a) Private employers must contribute an amount at least equal to the contributions of their employees, subject to the maximum allowable contribution under RR No. 17-2011, as

(b) Only private employers that contribute to all of their employees’ PERA shall be eligible to the additional allowable deduction.amended by RR No. 7-2023; and

To determine that the condition stated in II(a) above is met, the employee must also have contributed to PERA within the same calendar year.

The Qualified Employer’s Contribution, to the extent that it is allowable as deduction from gross income, shall likewise be exempt from withholding tax on compensation. For this purpose, the Administrator shall issue to the employer a certificate of the actual amount of Qualified Employer’s Contributions.

For purposes of recording the employer’s contribution corresponding to its share in the qualified employee’s PERA, allowable as a deductible expense from gross income, the account shall be designated as ‘Share in Qualified Employee’s PERA Contribution’.

Full disclosure of the details of the share of the employer to the employees’ PERA Contribution shall be part of the Notes to Financial Statements.”