Philippines offers tax-free PERA retirement accounts to UAE expats

Filipino expatriates in the UAE can now access the Personal Equity and Retirement Account (PERA), a state-backed voluntary retirement program offering tax-exempt investment growth and deductions. The Bangko Sentral ng Pilipinas (BSP) is promoting the digital platform to Overseas Filipino Workers (OFWs) to provide a regulated alternative to traditional savings and insurance products. Tax Incentives and Annual Contribution Limits Under the PERA law (Republic Act 9494), OFWs are entitled to contribute up to PHP 200,000 annually, which is double the PHP 100,000 limit set for residents in the Philippines. Contributors receive a 5% tax credit on their annual contributions, which can be applied against their Philippine income tax liabilities. Furthermore, all income earned from PERA investments—including dividends, interest, and capital gains—is exempt from both the 20% final tax on interest and the 10% tax on cash dividends. The program allows participants to diversify their funds into various BSP-approved investment products, including unit investment trust funds (UITFs), mutual funds, and government securities. According to latest figures from the BSP, the digital PERA platform has significantly increased participation among the 2.2 million Filipinos working abroad by removing the need for physical paperwork or branch visits. Withdrawal Rules and Eligibility To qualify for the full tax exemptions, contributors must reach the age of 55 and have made at least five years of…