If you work or earn income abroad, you can put up to ₱400,000 a year into a PERA, double the local limit. You earn the same 5% tax credit, and you can use it on any Philippine national internal revenue tax, not only income tax.
The end of the year is when many of our kababayan abroad send money home. If part of it is meant for your retirement, a PERA is built for exactly that. Here is how it works when you are overseas.
Under Section 3 of the PERA Act (Republic Act No. 9505), an overseas Filipino is:
Like every PERA contributor, you need a Philippine Tax Identification Number (TIN). Your administrator will also ask you to show that you work or earn income abroad.
Up to ₱400,000 a year, under Revenue Regulations No. 7-2023. The local limit is ₱200,000. You can contribute in pesos or in any convertible foreign currency, counted at the exchange rate on the day of the contribution.
| Your situation | Yearly limit |
|---|---|
| Overseas Filipino, single | ₱400,000 |
| Overseas Filipino, spouse is not a PERA contributor | ₱400,000 |
| Both spouses are overseas Filipinos | ₱400,000 each |
| Your spouse and children contribute for you, and you have no PERA yourself | ₱400,000 in total for them |
| Contributor in the Philippines | ₱200,000 |
The limit runs by calendar year. Anything you put in by December 31 counts toward this year's limit and this year's tax credit.
This is the part that is different for you. You still earn a credit of 5% of what you put in, so up to ₱20,000 a year. Under Section 8 of the PERA Act, an overseas Filipino can use it against any internal revenue tax payable to the national government.
That includes taxes you may meet later at home. Examples are capital gains tax when you sell a property, donor's tax, and documentary stamp tax. It cannot be used for local taxes such as real property tax.
The certificate is valid for five years from its date of issue. If your tax due is smaller than the credit, the unused part is forfeited. So use it on a tax bill large enough to absorb it. If you expect no Philippine taxes within five years, the credit may go unused. Your PERA still grows tax free either way.
You need a TIN and the usual identity checks, and contributions can come in pesos or foreign currency. ezPERA is being built so you can open and manage your PERA online, from wherever you work.
Your PERA stays yours and keeps growing tax free. Once you no longer work or earn income abroad, the local ₱200,000 limit applies to new contributions. The rules for withdrawal are the same for everyone: penalty free at age 55 with at least five years of contributions.
Sources: Republic Act No. 9505, Sections 3, 4, 5, 7 and 8; Revenue Regulations No. 7-2023; BIR Revenue Memorandum Circular No. 94-2026; BSP FAQ on the PERA Tax Credit.
Up to ₱400,000 a year under Revenue Regulations No. 7-2023, double the ₱200,000 limit for contributors in the Philippines. Contributions can be in pesos or any convertible foreign currency.
A Filipino citizen working or earning income abroad, including dual citizens under RA 9225, plus their legitimate spouse and children, under Section 3 of RA 9505.
Yes. Overseas Filipinos can use the 5% PERA tax credit against any internal revenue tax payable to the national government, within five years of the certificate's issue.
It stays yours and keeps growing tax free. New contributions then follow the local ₱200,000 limit.
Try the calculator with your own numbers, including your yearly tax credit. When you are ready, join the waitlist and we will let you know as soon as ezPERA opens.