By Francis Allan L. Angelo
The Department of Finance (DOF) announced on April 19, 2024, the successful conclusion of the draft double taxation agreement (DTA) with Cambodia, aiming to protect Filipino taxing rights and foster increased trade and investment.
Finance Secretary Ralph G. Recto highlighted the agreement’s significance in bolstering economic relations between the Philippines and Cambodia.
“The conclusion of this DTA marks a significant milestone in strengthening our ties. Through this effort, we have not only complied with our commitment to completing the ASEAN DTA network, but the DOF and the Bureau of Internal Revenue (BIR) have also ensured that the taxing rights of Filipinos here and abroad are equitably preserved and protected,” Recto said in a press statement.
The agreement focuses on mitigating the tax burden on individuals and businesses operating across borders, thereby potentially eliminating barriers to trade and investment and encouraging cross-border economic activities.
It provides detailed protocols on the taxation of income for citizens and residents of both nations and outlines how tax payments will be credited by each country’s tax administration.
Negotiations for the DTA began in Manila in 2018 and continued in Siem Reap, Cambodia, in 2019. With the draft now concluded, the signing of the DTA is scheduled for October 2024.
The Cambodian delegation was led by Dr. Seng Cheaseth, Director of Law, Tax Policy, and International Tax Cooperation from the General Department of Taxation, Ministry of Economy and Finance of Cambodia.
Representing the Philippines were DOF Revenue Operations Group Assistant Secretaries Gerald Alan A. Quebral and Dakila Elteen M. Napao, DOF Director Euvimil Nina R. Asuncion, BIR Deputy Commissioner Marissa O. Cabreros, Assistant Commissioner Larry M. Barcelo, and Atty. Robbie M. Bañaga.
