Manila: The Philippines and Cambodia are set to formalize a double taxation agreement (DTA) next year, as announced by the Department of Finance (DOF). Finance Secretary Ralph Recto confirmed that the agreement is scheduled to be signed in February 2025, following the finalization of the DTA draft on April 19, 2024. According to Philippines News Agency, the agreement aims to alleviate the burden of double taxation on individuals and businesses operating across borders between the two nations. This initiative is expected to eliminate barriers to trade and investment while encouraging cross-border economic activities. The DTA outlines the taxation of income earned by citizens and residents of the Philippines and Cambodia and specifies how each country's tax administrations will impose and credit taxes in compliance with their respective tax laws. Negotiations for the agreement began in Manila in 2018 and were further discussed in 2019 in Siem Reap, Cambodia. Initially, the DOF had aimed to sign the agreement in October of this year, but a request from Cambodia led to the rescheduling of the signing to February 2025. In addition to the Cambodia agreement, DOF Revenue Operations Group Undersecretary Charlito Martin Mendoza disclosed that DTA negotiations with Lao PDR are ongoing. The DOF also plans to renegotiate existing DTAs with Indonesia, Malaysia, and Singapore. Mendoza highlighted that these agreements are designed to support local businesses in their international operations by protecting tax rights and facilitating cross-border trade and investment. Mendoza emphasized that expanding the DTA network, especially within the ASEAN region, allows Filipino businesses to diversify their markets with reduced tax burdens, thereby enhancing their competitiveness globally. He also noted that the DOF is committed to strengthening transparency and compliance through collaborations such as the Mutual Administrative Assistance in Tax Matters and the Automatic Exchange of Information. These efforts aim to safeguard tax r evenues and establish a fair, rule-based system for businesses operating internationally.