The Philippines has begun negotiations with Singapore to update their nearly 50-year-old Double Taxation Agreement (DTA), according to the Department of Finance (DOF).
The goal is to modernize the 1977 agreement to better align with the demands of the current global economy and strengthen bilateral trade and investment. The effort is part of President Ferdinand Marcos, Jr.’s agenda to attract more foreign direct investments (FDIs) by increasing investor certainty, lowering transaction costs, and enabling greater trade and technology transfer.
“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,” said Finance Secretary Ralph Recto.
Recto said the review is particularly timely given recent developments in international taxation, the strong trade and investment ties between the two nations, and the presence of more than 200,000 Filipinos in Singapore.
The DOF 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.
