What Is PERA?
The Personal Equity and Retirement Account (PERA) is a voluntary retirement savings program in the Philippines that offers tax incentives and tax-free investment growth to encourage Filipinos to save for retirement. DragonFi is the first SEC-accredited PERA Administrator in the Philippines, helping you open and manage a PERA account online.
What Is DragonFi's Role as a PERA Administrator?
DragonFi is the first SEC-accredited PERA Administrator in the country. As Administrator, DragonFi is responsible for:
- Opening and maintaining PERA accounts
- Safekeeping and recording all contributions
- Coordinating with product providers (banks, mutual funds, UITFs, etc.)
- Executing investment instructions based on your choices
- Handling reporting, tax filings, and issuance of certificates (such as the PERA Tax Credit Certificate)
- Ensuring compliance with PERA rules and limits
You keep full control over your investments, while DragonFi ensures smooth operations and compliance.
What Are the Key Benefits of a PERA Account?
- Higher Contribution Limits – Up to ₱200,000/year (Filipinos) or ₱400,000/year (OFWs)
- 5% Tax Credit – Up to ₱10,000/year for Filipinos, ₱20,000/year for OFWs
-
Tax-Free Growth – No income tax, final tax, or capital gains tax on investment earnings
- For stocks & REITs → dividend tax reduced from 10% to 0%
- For other products → withholding tax reduced from 20% to 0%
- No Estate Tax – PERA assets pass to beneficiaries tax-free
- Protection from Bankruptcy – PERA funds cannot be seized in insolvency proceedings
Since everyone's income, tax bracket, and retirement timeline are different, see how PERA benefits vary from person to person for a closer look at how these apply to you.
How Much Can You Earn With PERA? (Sample Computation)
Let's assume you invest ₱60,000 per year (₱5,000 per month) in a PERA account for the next 30 years, earning an average dividend yield of 5% per year, with an annual capital appreciation of 3%.
Projected PERA Savings & Earnings
- Total Contributions: ₱1.8 million (₱60,000 x 30 years)
- Total Portfolio Value After 30 Years: ₱7.45 million
- Annual Gross Dividends at Retirement (5% yield): ₱372,590 per year
- Total Tax Credits Earned: ₱90,000 (₱3,000 x 30 years)
- Estate Tax Savings (if passed to heirs)
With this setup, you'll have a steady passive income of approximately ₱372,590 per year (~₱31,000 per month) from gross dividends alone, while your investments continue to grow tax-free.
Eligibility & Account Opening
Who Can Open a PERA Account and What Are the Requirements?
Any Filipino citizen — whether employed, self-employed, freelance, OFW, or retired — can open a PERA+ account as long as they meet the basic requirements:
- At least 18 years old
- Holds a valid TIN
- Completes the in-app e-KYC on the DragonFi app
- Filipinos aged 55 and above can still open a PERA+ account, provided they meet these same requirements.
PERA+ is not available to foreigners or unemployed minors.
For a full walkthrough, see our PERA+ onboarding guide.
I'm Not Yet Employed / My Child Is Not Employed. Can We Open a PERA+ Account?
Make sure to have a valid TIN first before opening a PERA account.
How to Apply for a TIN in the Philippines (and Why You Need One for Your DragonFi PERA Account)
Can I Open a PERA+ Account for a Family Member or Partner Using My Existing DragonFi Login?
No. Each PERA account must be opened under the individual contributor's own name and Tax Identification Number (TIN). This means your family member, partner, or any other intended account holder will need to create their own DragonFi account to open a PERA account.
Contributions & Withdrawals
How Much Is the Minimum and Maximum PERA Contribution?
- There is no minimum contribution to PERA. You may contribute any amount.
- The maximum PERA contribution is:
- ₱200,000 per calendar year for Filipinos
- ₱400,000 per calendar year for OFWs
The contribution limit resets every year (January to December).
Unused contribution limits do not carry over to the next year.
How Are PERA Contributions Counted?
PERA contributions are counted based on the actual cash credited into the PERA account.
- Once funds are successfully funded, they already count toward the annual limit
- The contribution count does not depend on investment or deployment
- Funds held as cash still count as contributions
Can I Move Available Cash From My Regular DragonFi Account to My PERA Account?
Yes. You can transfer available cash from your existing DragonFi account into your PERA account, as long as it's within the annual PERA contribution limit of ₱200,000.
However, transferring funds from your PERA account back to your regular DragonFi account is considered a withdrawal. This will be subject to PERA withdrawal rules, including applicable taxes, penalties, and possible forfeiture of tax incentives if done before meeting the qualified withdrawal conditions.
When Can I Withdraw My PERA?
Qualified Withdrawals (No Penalties)
You can withdraw your PERA savings tax-free (both contributions and earnings) when:
- You retire at age 55 or older with at least 5 years of PERA contributions,
- In the event of death (benefits go to your heirs/beneficiaries),
- In case of permanent total disability or hospitalization of more than 30 days
Early/Unqualified Withdrawals (With Penalties)
If you withdraw outside the qualified conditions, the withdrawal will be considered an early/unqualified withdrawal and subject to penalties mandated by PERA regulations:
- 20% penalty on gross income earned by your PERA investments,
- Forfeiture of any 5% tax credit previously claimed.
Are PERA Withdrawals Subject to a Fee?
Yes. In addition to statutory penalties for early/unqualified withdrawals, a ₱200 withdrawal processing fee applies to all approved PERA withdrawals.
For the full details on applicable fees and penalties, see DragonFi PERA fees and penalties.
Tax Benefits
What Are the Tax Benefits of PERA?
- 5% tax credit on total annual contributions (up to the limit)
- Tax-free income and investment growth
- Tax-exempt upon qualified withdrawal (age 55 + 5 years of contributions)
Note: Tax benefits are forfeited if withdrawn early without valid exemption.
How Can OFWs Benefit From the PERA Tax Credit?
OFWs can request the PERA tax credit certificate from DragonFi and submit it to the BIR for crediting against their Philippine income tax. See PERA for OFWs: Document Submission Guidelines.
How Do I Claim the 5% PERA Tax Credit?
DragonFi, your PERA Administrator, will apply for the issuance of the PERA Tax Credit Certificate (PTCC) with the BIR, on behalf of all contributors. This is done within 60 days after the end of each calendar year.
Once issued, the PTCC reflects your total PERA contributions for the previous year and the corresponding 5% tax credit.
You can then use the PTCC when filing your Annual Income Tax Return (ITR) with the BIR:
- If employed: apply it against your withholding tax.
- If self-employed/professional: apply it against your annual income tax due.
DragonFi will issue the TCC either as a printed copy or a PDF sent via email. Once released, the eTCC is considered final.
Investments
What Investments Can I Buy Under PERA?
- Stocks in the PSE Index
- Dividend Yield Index stocks
- REITs
- PERA-specific UITFs
See the full list of PERA-eligible stocks in the Philippines before you invest.
Are There Fees When Buying or Selling Stocks or Funds in My PERA Account?
Yes. Standard brokerage or fund management fees apply when buying or selling individual stocks or funds. Investment gains inside PERA are tax-free, meaning no 10% dividend tax.
If you're an employee and incorporate your PERA contribution into your payroll, your contribution will be pre-tax, giving you additional tax savings while still enjoying all PERA benefits. Kindly send us an email if you want us to coordinate with your HR/Comp & Ben/Payroll team to incorporate PERA+ contributions.
Can I Choose My Own Stocks Under PERA?
Yes — as long as they are PERA-eligible.
What If the Stock Is No Longer Part of the PSE Index? Do I Need to Sell This Stock?
No, you do not need to sell this particular stock. However, you will be prohibited from buying more shares of this stock since it is no longer part of the PSE Index.
Does My Dividend Income Automatically Get Reinvested?
No. Reinvestment must be done manually. Dividends are also subject to PERA withdrawal rules.
Can I Transfer PERA Stocks to My Regular DragonFi Account and Vice Versa?
No, PERA investments cannot be transferred to a regular DragonFi account and vice versa. If you want to move funds out of PERA, you'll need to sell your investments and withdraw the proceeds.
However, you can transfer available cash from your regular DragonFi account to your PERA account, subject to contribution limits.
PERA is designed as a long-term, tax-advantaged account. Keeping your investments within PERA allows you to benefit from tax perks, such as zero tax on dividends.
Onboarding & Platform Use
How Do I Start With DragonFi PERA?
Download the DragonFi app and complete the in-app e-KYC process. Already have a regular DragonFi account? Here's how to open your PERA account as an existing DragonFi user.
How Can OFWs Be Onboarded Into DragonFi PERA?
Same process: download the app, complete e-KYC, and start contributing. OFWs are entitled to higher contribution limits and tax credits.
Important: When creating a PERA+ account, OFWs must use a Philippine address to comply with account requirements.
Once onboarded, OFWs are entitled to:
- Higher annual contribution limits (up to ₱400,000 for OFWs). Please note that contributions reflecting the full ₱400,000 limit will only be applied once our compliance team has approved and verified your account.
- Tax credits under the PERA program
This ensures your contributions are fully compliant and eligible for PERA benefits.
I Am an Employer, and I Want to Enroll My Employees in PERA. How Do I Do It?
Please email vianca.adornado@dragonfi.ph and we will get in touch!
PERA Fees
Does DragonFi Charge a PERA Administrator Fee?
Yes. Starting July 1, 2026, DragonFi will charge an annual PERA Administrator Fee.
- Retail PERA Accounts
- Annual fee: 0.45% or capped at ₱300 per year
- Retail PERA accounts are primarily self-service. Individual clients make contributions directly and do not receive the corporate administration, employer support, and payroll integration services included in the corporate PERA program.
- Corporate PERA Accounts
- For more information about the admin fee for Corporate PERA, employers may contact vianca.adornado@dragonfi.ph.
Secure Your Future With PERA
Start investing in your retirement today and take control of your financial future. With tax-free growth, employer contribution benefits, and full control over your investments, PERA is one of the best ways to build long-term wealth.
Open your DragonFi PERA account to get started.