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nuebe gaming Manila, Phnom Penh to ink pact to eliminate double taxation
The Philippines is set to sign an agreement with Cambodia next year that would eliminate double taxation, while negotiating similar deals with other peers in the Association of Southeast Asian Nations (Asean) in a bid to ease exporters’ tax burden.
In a statement on Tuesday, the Department of Finance (DOF) said the move would increase the competitiveness of Filipino products in the Cambodian market.
Article continues after this advertisement Signing delayedThe double taxation agreement (DTA) was supposed to be signed in October this year, but it was delayed after Cambodian officials had requested for the deal to be signed in February next year instead.
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“These agreements protect our tax rights while facilitating cross-border trade and investment. Expanding our DTA network, particularly within Asean, allows Filipino businesses to diversify their markets with fewer tax burdens, boosting their competitiveness abroad,” Finance Undersecretary Charlito Mendoza said.
Article continues after this advertisementSought for comment, Philippine Exporters Confederation, Inc. (Philexport) vice president for advocacy, communications and special concerns Ma. Flordeliza Leong told the Inquirer that the group was still reviewing how the measure would impact the country’s multibillion-dollar export sector.
Article continues after this advertisement Reducing trade barriers“Anything to ease tax burden and eliminate trade barriers is in principle good for exporters,” Leong said when asked for Philexport’s initial analysis.
Article continues after this advertisementUnder the terms of the deal, both Cambodia and the Philippines agree to mitigate the burden of double taxation on individuals and businesses operating across borders, which may contribute to the elimination of barriers to trade and investment and encouragement of cross-border economic activities.
The upcoming agreement 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 revenue rules in both nations.
Negotiations on the deal began in 2018 in Manila, and was followed through in 2019 in Siem Reap, Cambodia. The DOF said talks with Lao PDR to likewise forge a deal meant to avoid double taxation is ongoing. Meanwhile, the Philippines is planning to renegotiate similar agreements with Indonesia, Malaysia and Singapore. INQ
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