Looking at Personal Equity and Retirement Account or PERA being offered by BDO and BPI it seems like PERA would be a UITF offering the only differences are:
- 5% tax credit from your contributions
- Tax exemption privileges from the earnings of all PERA investments
- In case the employer of the Contributor contributes to his PERA, the qualified employer’s contribution to its employee-contributor’s PERA shall not form part of the employee-contributor’s taxable gross income. Hence, that qualified contribution from the employer is exempted from the withholding income tax of the employee-contributor whether on compensation or on fringe benefits.
- Upon reaching the age of 55 and with a minimum of five (5) annual contributions, the “CONTRIBUTOR” has the option to avail of his retirement benefits free of tax or may choose to avail it later.
- The “CONTRIBUTOR” may choose to avail of his retirement benefit in lump-sum, through regular pensions or a combination thereof.
see PERA offerings from BDO and BPI below.