The Department of Finance (DOF) said completed a draft double taxation agreement (DTA) with Cambodia to protect Filipinos’ taxing rights and increase trade and investment across economic borders.
“The conclusion of this DTA marks a significant milestone in strengthening the Philippines and Cambodia’s economic ties,” Finance Secretary Ralph Recto said in a statement.
“Through this effort, we have not only complied with our commitment to completing the ASEAN DTA network, but the DOF and the BIR [Bureau of Internal Revenue] have also ensured that the taxing rights of Filipinos here and abroad are equitably preserved and protected,” he said.
Under the terms of the agreement, Cambodia and the Philippines agreed to ease the burden of double taxation on individuals and businesses operating across borders, which may contribute to the elimination of barriers to trade and investment and encouragement of cross-border economic activities.
The DTA encompasses taxation of income earned by citizens and residents of the Philippines and Cambodia, and outlines how each country’s tax administration shall impose and credit taxes paid in accordance with the tax rules.
Negotiations on the DTA began in 2018 in Manila, and was followed through in 2019 in Siem Reap, Cambodia.
Following the conclusion of the draft, the Philippines expects the accord to be signed in October 2024.
The Cambodian delegation was headed by Dr. Seng Cheaseth of Cambodia’s Ministry of Economy and Finance.
The Philippine delegation was composed of DOF revenue operations group assistant secretaries Gerald Alan Quebral and Dakila Elteen Napao and director Euvimil Nina Asuncion and BIR deputy commissioner Marissa Cabreros, assistant commissioner Larry Barcelo and Robbie Bañaga.
