President Marcos assured Cambodian Prime Minister Hun Manet that the Philippines is doing all it can to solve the issue of double taxation between the two countries.

(From right) President Ferdinand 'Bongbong' Marcos Jr. and Cambodian Prime Minister Hun Manet during a bilateral meeting in Melbourne, Australia. (Photo from the Presidential Communications Office)

He made the assurance during the bilateral meeting with Hun as part of the Chief Executive’s attendance to the Special Summit to commemorate the 50th Anniversary of Association of Southeast Asian Nations (ASEAN)-Australia Dialogue Relations in Melbourne.

“We are working very hard on the issue of double taxation between our two countries,” the Chief Executive said.

“And I just wanted to assure you that we are doing the work for that … because if we are going to talk about increased trade between Cambodia and the Philippines, that has to be sorted out, we cannot leave it there,” he added.

Marcos also expressed confidence that the issue can be resolved because the Philippines has gone through similar processes with other Asian countries.

Hun made the same remarks, noting that Cambodia also made such initiatives with other countries to improve trade and investment system mechanism.

Double taxation refers to taxes being paid twice on the same source—income, properties, and other investments.

Philippines and Cambodia first held their discussions on the double taxation agreement in Manila in 2018 and made similar efforts in the succeeding years.

Under the agreement, residents of one country receiving income in another state, or vice versa, will not be taxed twice for the same income, property or investment.

The agreement provides tax relief in the form of exemptions or preferential tax rates, and aims to prevent tax evasion.

It also encourages foreign trade and investments between the two countries.