Economy Policy
Philippines, Singapore start talks on double tax agreement update
The Philippines and Singapore have begun negotiations to update their nearly 50-year-old Double Taxation Agreement to boost economic ties and bilateral trade.
The Philippines has opened negotiations with Singapore to update the nearly 50-year-old Double Taxation Agreement (DTA), the Department of Finance (DOF) said on Thursday.
The agreement is being modernised to meet the current demands of both countries' economies, strengthen bilateral and investment relations, and create more job opportunities for Filipinos, the DOF said in a statement.
The agency completed the first round of negotiations in Manila from September 2 to 4. Singapore Ambassador to the Philippines Constance See said the talks highlighted the two countries' growing relationship and commitment to enhancing cross-border trade and investment.
"Renegotiating the DTA will be very important to increase the flow of trade and investment and give a very positive signal to the business community that our governments share a commitment to enhancing the cross-border economic activity," she said.
See also noted Singapore's foreign direct investment in the Philippines increased by 14% over the past five years, reflecting Singaporean businesses' continued confidence in the Philippine market.
DOF Assistant Secretary Dakila Elteen Napao led the Philippine delegation, while Inland Revenue Authority of Singapore Assistant Commissioner Angela Ang headed the Singapore delegation.
Finance Secretary Ralph Recto expressed confidence that the updated DTA will ensure fairness between the two countries. "The DTA between the Philippines and Singapore has been in place for almost 50 years. It's high time we recalibrate the terms to reflect the realities of today's rapidly shifting global economy," he said.
Recto added that the review is timely due to significant changes in international taxation and the presence of more than 200,000 Filipinos in Singapore.
Signed in 1977, the DTA ensures businesses operating in the Philippines and Singapore are not taxed twice for the same income and that taxing rights between the countries are allocated fairly and transparently. It applies to either Singaporean or Filipino tax residents and covers various income types, including business profits, employment income, interest, royalties, and capital gains.
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