THE Philippines, through the Department of Finance (DOF), has begun negotiations with Singapore to update the nearly five-decade-old 1977 Double Taxation Agreement (DTA).
This is to “keep pace with the demands of the modern economy and strengthen bilateral and investment relations that will translate to more jobs for Filipinos,” the DOF said in a statement on Thursday, September 25.
The government agency said this was also seen in line with President Marcos’ bid to attract more foreign direct investments by enhancing investor certainty, lowering transaction costs and enabling greater trade and technology transfer.
Robust relations
“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,” Finance Secretary Ralph Recto said.
Recto vowed to ensure that the new pact would be fair and mutually beneficial to both the Philippines and Singapore.
He stressed that the review was especially timely given significant developments in international taxation, the Philippines’ and Singapore’s robust trade and investment relations.
More than 200,000 Filipinos are currently based in Singapore.
The DOF successfully concluded the first round of negotiations on the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance from Sept. 2 to 4.
During the negotiations, Singapore Ambassador to the Philippines Constance See reaffirmed the “positive and growing” relationship between both countries. This followed the celebration of 55 years of diplomatic relations last year. (Philippine Daily Inquirer)
