Manila: The Philippines and Singapore have initiated negotiations to update their 1977 Double Taxation Agreement (DTA), as announced by the Department of Finance (DOF) on Thursday. The objective of the update is to align the agreement with the current demands of the global economy and to enhance bilateral and investment relations, leading to increased employment opportunities for Filipinos.
According to Philippines News Agency, the DOF recently concluded the initial round of discussions on the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance, which took place from September 2 to 4 in Manila. During these negotiations, Singapore Ambassador to the Philippines Constance See highlighted the positive and growing relationship between the two nations, following the celebration of their 55 years of diplomatic relations last year.
Ambassador See emphasized that renegotiating the DTA is crucial for boosting trade and investment flows, as well as for signaling to the business community the governments' shared commitment to enhancing cross-border economic activities. She also noted that Singapore's foreign direct investments in the Philippines have risen by 14 percent over the past five years, demonstrating sustained confidence in the Philippine economic trajectory.
Both countries reinforced their long-standing partnership, focusing on strengthening bilateral ties in trade and investment, security and defense, cultural exchanges, and fostering people-to-people connections. The Philippine delegation was led by DOF Assistant Secretary Dakila Elteen Napao, while the Singapore delegation was headed by Inland Revenue Authority of Singapore Assistant Commissioner Angela Ang. Other key participants included DOF Assistant Secretary Euvimil Nina Asuncion, Bureau of Internal Revenue (BIR) Deputy Commissioner for Legal Group Larry Barcelo, and BIR International Tax Affairs Division Chief Robbie Ba±aga.
Finance Secretary Ralph Recto stated that the DTA, which has been in effect for nearly five decades, needs to be recalibrated to reflect the realities of today's rapidly changing global economy. He pointed out that the review comes at a significant time due to major developments in international taxation, the robust trade and investment relationship between the Philippines and Singapore, and the presence of more than 200,000 Filipinos residing in Singapore.
