CMEPA implements tax incentives for employers to boost PERA savings

The Capital Markets Efficiency Promotion Act (CMEPA) was recently implemented to encourage Filipinos to build up more funds under the Personal Equity and Retirement Account (PERA).

Under CMEPA, private employers that contribute an amount equal to or greater than their employees' contributions receive a 50-percent additional tax deduction.

SEC Chair Francisco Lim highlighted CMEPA as a landmark measure that offers stronger incentives for long-term savings and encourages companies to support employee retirement planning.

PERA, established under the Pera Act of 2008, is a voluntary retirement savings program available in addition to existing benefits from the Social Security System and Government Service Insurance System.

The program provides unique tax benefits to encourage Filipinos to save for their future and increase capital availability in the financial system while stimulating the local stock market.

CMEPA took effect on July 1 after being signed by President Ferdinand R. Marcos, Jr., aiming to align Philippine capital markets more closely with regional peers.