The three-day discussions, held from May 21 to 23, 2025, marked a significant step forward in finalizing a Comprehensive Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (CDTA).
The negotiations were led by the Philippine Department of Finance (DOF) and the Bureau of Internal Revenue (BIR), in partnership with Hong Kong’s Inland Revenue Department.
The CDTA seeks to eliminate double taxation on income, foster transparency, deter tax evasion, and reduce tax-related barriers for both individuals and corporations. It is seen as a crucial move to enhance trade, attract more investments, and boost confidence among foreign investors.
Finance Secretary Ralph G. Recto praised the negotiation teams, noting, “This not only strengthens our bilateral relations but is a concrete step toward deepening regional integration. More trade means more jobs and more wins for every Filipino.”
According to the DOF, the parties reached a consensus on most key provisions of the treaty following a thorough article-by-article review. Hong Kong’s Inland Revenue Commissioner Sze-wai Benjamin Chan also lauded the collaborative spirit of the talks and looked forward to “mutually beneficial outcomes.”
The Philippine delegation included senior officials from the DOF and BIR, while representatives from the Department of Foreign Affairs and the Philippine Consulate General in Hong Kong joined as observers.
With substantial progress made, both sides are optimistic that the treaty will be finalized during the second round of negotiations this October—paving the way for stronger economic ties and more inclusive growth across both jurisdictions, the DOF said.. —Ed: Corrie S. Narisma
