The Philippines and Singapore have concluded negotiations to update their double taxation agreement dating from 1977. Manila wants clearer rules for cross-border income and stronger cooperation between tax authorities as investment and trade ties deepen. The agreement reached in Singapore in September was announced on 2 October. The announcement concerns completed negotiations; it does not establish that the updated treaty has entered into force.
The Philippines and Singapore have completed negotiations to modernise their double taxation agreement. Manila wants clearer rules for income crossing the two countries’ borders as trade and investment links deepen. The announcement concerns an update to the framework that governs how the countries tax those activities.[1], [2]
The Philippine Department of Finance announced on 2 October that agreement had been reached during 4 days of negotiations in Singapore, from 22 to 25 September. The existing treaty dates from 1977. Finance Department official Euvimil Nina Asuncion led the Philippines’ delegation, which included representatives of the Bureau of Internal Revenue. Angela Ang of Singapore’s tax authority headed the other team.[1]
Finance Secretary Frederick Go said the update was intended to support investment and growth while protecting the Philippines’ taxing rights. The department also seeks stronger cooperation between tax authorities. Double taxation agreements help prevent the same income from being taxed in both jurisdictions and establish how taxing rights are divided.[1]
Singapore is a major trading and investment partner for the Philippines. The department highlighted movement of workers, professionals, capital, technology and services between the countries. It places the negotiations within the Philippines’ effort to modernise tax treaties with partners in the Association of Southeast Asian Nations.[1]
