The Philippines and Cambodia are set to formally sign their double taxation agreement (DTA) after six years of negotiations, the Department of Finance (DOF) announced.
In a statement on Friday, May 3, the DOF said that the draft DTA between Manila and Phnom Penh was finalized on April 19, with the final signing ceremony scheduled in October this year.
The negotiations for the DTA began in Manila in 2018 and continued in 2019 in Siem Reap, Cambodia.
The DOF said the DTA aims to safeguard the taxing rights of Filipinos while fostering increased trade and investment opportunities between the two countries.
Finance Secretary Ralph G. Recto said the conclusion of the DTA marked a significant milestone in strengthening the Philippines and Cambodia’s economic ties.
“Through this effort, we have not only complied with our commitment to completing the ASEAN DTA network, but the DOF and the BIR [Bureau of Internal Revenue] have also ensured that the taxing rights of Filipinos here and abroad are equitably preserved and protected,” Recto said.
The agreement between Cambodia and the Philippines seeks to alleviate the impact of double taxation on individuals and businesses engaged in cross-border activities, with the potential to reduce trade barriers, stimulate investment, and foster cross-border economic growth.
DOF said the DTA addresses the taxation of income earned by residents and citizens of both countries, outlining the procedures for each nation's tax authorities to levy and credit taxes in compliance with the tax regulations of both jurisdictions.
Seng Cheaseth, Director of Law, Tax Policy, and International Tax Cooperation at the General Department of Taxation within the Ministry of Economy and Finance of Cambodia, led the Cambodian delegation during the negotiations.
On the other side, the Philippine delegation included Finance Assistant Secretaries Gerald Alan A. Quebral and Dakila Elteen M. Napao, Director Euvimil Nina R. Asuncion from the DOF Revenue Operations Group, as well as Deputy Commissioner Marissa O. Cabreros, Assistant Commissioner Larry M. Barcelo, and Atty. Robbie M. Bañaga from the BIR.