THE Philippines and Singapore have started negotiations to update their 1997 double taxation agreement (DTA), the Department of Finance (DoF) said.
In a statement on Thursday, the DoF said the first round of negotiations for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance concluded earlier this month.
“The DTA between the Philippines and Singapore has been in place for almost 50 years. It’s high time we recalibrate the terms to reflect the realities of today’s rapidly shifting global economy,” Finance Secretary Ralph G. Recto said.
The Philippines has around 44 double taxation agreements, including those with the US, the UK, Spain, South Korea, Japan, Germany, China, Canada, Australia.
The Philippines is also working on a DTA with Hong Kong. It signed an agreement with Cambodia in February.
He added that significant developments in international taxation have taken place since the original deal was signed, and that trade relations have evolved significantly. He added that double taxation issues potentially affect 200,000 Filipinos in Singapore.
“Renegotiating the DTA will be very important to increase the flow of trade and investment and give a very positive signal to the business community that our governments share a commitment to enhancing the cross-border economic activity,” Singapore Ambassador to the Philippines Constance See said. — Aubrey Rose A. Inosante