THE PHILIPPINES needs to pursue a double taxation agreement (DTA) with Ireland as a follow-up to its ongoing negotiations with Hong Kong and Singapore, a tax expert said.
Eleanor L. Roque, tax principal at P&A Grant Thornton, said Ireland presents a strategic opportunity for a DTA, due to its status as a global hub for information technology (IT) and digital enterprises.
“Ireland has become a hub for a lot of IT and digital companies, but we don’t have a DTA,” she told BusinessWorld via Viber on Monday.
Last week, the Department of Finance said the Philippines and Singapore started negotiations to update their 1997 agreement to reflect the evolution of the global economy.
Ms. Roque said such agreements encourage the flow of income from both countries by removing the risk of double taxation.
The Philippines has around 44 double taxation agreements, including those with the US, the UK, Spain, South Korea, Japan, Germany, China, Canada, and Australia.
Internal Revenue Commissioner Romeo Lumagui, Jr. said a DTA with Hong Kong is also in the works with negotiations seen concluding by Sept. 29.
The DoF also signed an agreement with Cambodia in February.
Ms. Roque also said the DTA with Hong Kong is crucial due to the large volume of transactions to and from the city. — Aubrey Rose A. Inosante