Revised Requirements on Manner of Remittance of Penalties of 5% and 20% for Early Withdrawal of Qualified Contribution under PERA Act of 2008

April 12, 2022 REVENUE MEMORANDUM CIRCULAR NO. 45-2022 SUBJECT : Revised Requirements on the Manner of Remittance of Penalties of Five Percent (5%) and Twenty Percent (20%) for Early Withdrawal of Qualified Contribution under Personal Equity and Retirement Account (PERA) Act of 2008 TO : All Internal Revenue Officers/Employees and Others Concerned This Circular is being issued pursuant to the provisions of Section 5 of Revenue Regulations (RR) No. 2-2022, amending the pertinent provisions of RR No. 10-2016, as further amended by RR No. 6-2021, more particularly, the manner of remittance of penalties of five percent (5%) and twenty percent (20%) for early withdrawal of qualified contributions. Accordingly, the said penalties shall be remitted by the PERA Administrator through the online filings and payment facilities of the Bureau of Internal Revenue on or before the last day of the month following the close of the calendar quarter during which the deduction was made. The Payment Form (BIR Form No. 0605) shall be duly accomplished under the name of the PERA Administrator by providing all the prescribed information, more particularly under "line item no. 17" of the said form, by filling-up an "X" mark in the box provided for "Others," as well as the phrase "PERA Early Withdrawal Penalty" in the separate box provided for "Specify." The amount of penalties shall be based on the aggregate respective totals of the 5% and 20% penalties as reflected in the Quarterly Report on PERA Distributions/Early Withdrawals/Terminations. The documentary proofs of payment ( i.e. , duly filed BIR Form No. 0605, Filing Reference Number, Confirmation/Acknowledgement Receipt, etc.) shall be submitted to the PERA Processing Office-Audit Information Tax Exemption and Incentives Division, thru its official email address at [emailprotected] , within five (5) days from the date of payment of the penalties. All internal revenue officials and employees are hereby enjoined to be guided accordingly and give this Circular as wide a publicity as possible. This Circular shall take effect immediately. CAESAR R. DULAY Commissioner of Internal Revenue By: (SGD.) MARISSA O. CABREROS Deputy Commissioner Legal Group Officer-in-Charge