The Department of Finance (DOF), in a statement, said the modernized double taxation agreement (DTA) would provide more predictable tax rules for businesses and individuals, strengthen cooperation between tax authorities and ensure fair taxation between the two countries.
The agreement was reached following four days of negotiations in Singapore from Sept. 22 to 25.
Nearly 50 years
The existing DTA was originally concluded in 1977, prompting the two countries to renegotiate its provisions to reflect changes in their economies and the international tax landscape.
“The Philippines is committed to strengthening tax cooperation across the region. The renegotiation of the DTA will help modernize our tax framework to support investment and economic growth while protecting our legitimate taxing rights,” Finance Secretary Frederick Go said.
The DOF said updating the agreement has become increasingly important given the Philippines’ economic ties with Singapore, a major trading and investment partner.
The movement of professionals, workers, businesses, capital, technology and services between the two countries continues to generate cross-border economic activity, increasing the importance of clear rules on how income is taxed.
Tax treaties generally seek to prevent the same income from being taxed in both jurisdictions while establishing how taxing rights are divided between countries.
ASEAN push
The negotiations form part of the DOF’s efforts to modernize the Philippines’ network of tax treaties with other Association of Southeast Asian Nations (ASEAN) member states and align them with developments in international taxation.
The Philippine negotiating team was led by DOF Revenue Operations Group Assistant Secretary Euvimil Nina Asuncion and included officials from the DOF and Bureau of Internal Revenue.
Singapore’s delegation was led by Inland Revenue Authority of Singapore Assistant Commissioner Angela Ang.
Cambodia treaty
Separately, the DOF welcomed the Senate’s concurrence in the Philippines-Cambodia DTA signed in February 2025, bringing the agreement closer to taking effect.
Once in force, the treaty will establish tax rules between the Philippines and Cambodia, prevent double taxation and strengthen cooperation against tax evasion and avoidance.
The DOF said the agreement would also provide businesses and investors with greater tax certainty and support bilateral trade and investment.
The Cambodia agreement is also part of the Philippines’ broader effort to deepen tax cooperation within ASEAN as cross-border investment, services and movement of workers increase across the region. —Ed: Corrie S. Narisma
