Manila, Aug. 14 -- The Bureau of Internal Revenue (BIR) has clarified that the 20 percent early withdrawal penalty (EWP) from Personal Equity and Retirement Accounts (PERA) is limited to the earnings from PERA assets actually withdrawn.

In the Revenue Memorandum Circular (RMC) 91-2026 issued on Aug. 11, the BIR said income, unrealized gains, and other PERA assets that remain invested are excluded from the penalty base.

It also noted that proceeds from the sale or redemption of PERA investments that remain within the PERA custody account for reinvestment are "not considered an early withdrawal."

"Simply put, you can manage one part of your PERA without unnecessarily exposing the rest of your retirement portfolio to the early-withdrawal...