At A Glance
- The Philippines and Japan signed the double taxation convention.
- It was signed during President Marcos' state visit to Japan.
- The agreement aims at preventing the same income from being taxed in both countries while providing clearer tax rules for cross-border investments and business activities.
President Ferdinand R. Marcos Jr. and Japanese Prime Minister Sanae Takaichi hold a joint press conference on May 28, 2026 in Tokyo, Japan. (PCO)
The Philippines and Japan signed a landmark agreement to avoid double taxation, Malacañang said.
The agreement was signed during President Marcos' four-day state visit to Japan.
Marcos and Japanese Prime Minister Sanae Takaichi witnessed the signing of the Double Taxation Convention (DTC).
It is expected to strengthen the business environment by preventing the same income from being taxed in both countries while providing clearer tax rules for cross-border investments and business activities.
"Today, we also witnessed the signing of an important agreement on the avoidance of double taxation, which will enhance the business environment and promote greater cross-border investment," Marcos said during his joint press conference with the Prime Minister.
Manila and Tokyo also forged new arrangements to expand cooperation in agriculture and fisheries, improve equitable access to quality healthcare services, and sustain long-standing collaboration in human resource development.
The two countries also agreed to deepen cooperation in strategic and emerging sectors, including artificial intelligence, space development and applications, energy security, and supply chain resilience.
Defense cooperation
The two leaders announced the start of negotiations for a General Security of Military Information Agreement (GSOMIA) and discussions on the delimitation of maritime boundaries.
"These are very important steps to further strengthen our defense cooperation and to uphold a rules-based maritime order. They will enhance the mutual trust between our two countries," Marcos said.
Takaichi said Japan would continue supporting efforts to strengthen economic resilience in the Philippines and across the Association of Southeast Asian Nations (ASEAN).
"We also concurred to further deepen economic cooperation between Japan and the Philippines and Japan and ASEAN, including economic cooperation in the entire Asian region and improving supply chain resilience," she said.
Takaichi added that both countries would continue exploring possible upgrades to the Japan-Philippines Economic Partnership Agreement (JPEPA) and the Japan-ASEAN Comprehensive Economic Partnership Agreement.
The Japanese Prime Minister also said Tokyo would continue promoting investments and economic exchanges with the Philippines to support its goal of becoming an upper-middle-income economy.