The Philippines and Cambodia recently finalized the draft of the double taxation agreement (DTA) which aims to protect Filipinos’ taxing rights and increase trade and investment across economic borders.
A new release from the Department of Finance (DOF) on Friday said the DTA draft was finalized on April 19, 2024.
Following the conclusion of the draft, the Philippines expects to hold the signing of the DTA in October.
‘The conclusion of this DTA marks a significant milestone in strengthening the Philippines and Cambodia’s economic ties,’ Finance Secretary Ralph Recto said. ‘Through this effort, we have not only complied with our commitment to completing the ASEAN DTA network, but the DOF and the BIR have also ensured that the taxing rights of Filipinos here and abroad are equitably preserved and protected.’
Under the terms of the agreement, Cambodia and the Philippines agreed to mitigate the burden of double taxation on individuals and businesses operating across borders, which may contribute to the eli
mination of barriers to trade and investment and encouragement of cross-border economic activities.
The DTA encompasses taxation of income earned by citizens and residents of the Philippines and Cambodia, and outlines how each country’s tax administration shall impose and credit taxes paid in accordance with the tax rules in both countries.
Negotiations on the DTA began in 2018 in Manila, and was followed through in 2019 in Siem Reap, Cambodia.
The delegation of Cambodia was headed by Dr. Seng Cheaseth, the director of Law, Tax Policy and International Tax Cooperation under the General Department of Taxation of the Ministry of Economy and Finance.
Meanwhile, the Philippine delegation was composed of DOF Revenue Operations Group Assistant Secretaries Gerald Alan Quebral and Dakila Elteen Napao and Director Euvimil Nina Asuncion; and Bureau of Internal Revenue Deputy Commissioner Marissa Cabreros, Assistant Commissioner Larry Barcelo, and Robbie Bañaga.(PNA)
Source: Philippines News Agency