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Philippine, Cambodia working on double taxation deal
MANILA, Philippines — The Philippines and Cambodia are conducting negotiations for an agreement which seeks to prevent double taxation on individuals or companies covered by both jurisdictions, according to the Department of Finance (DOF).
According to the DOF, both countries may soon reach an agreement on double taxation following the second round of negotiations between high level officials held last December in Siem Reap, Cambodia.
“The negotiation was held in a friendly, cooperative and constructive atmosphere of mutual understanding, with a frank exchange of information and ideas,” the Philippine delegation, led by Finance Undersecretary Antonette Tionko, said in a report to Finance Secretary Carlos Dominguez.
Tionko said Cambodia had agreed to “majority of the proposals” from the Philippines on the double taxation agreement.
Deputy Director General Bun Neary of the General Department of Taxation led the Cambodian side.
Also present during the meeting were Finance Assistant Secretary Dakila Napao, Internal Revenue Deputy Commissioner Marissa Cabreros and other officials from the DOF and BIR.
Manila and Phnom Penh first held their discussions on the double taxation agreement in Manila in June 2018.
Under a double taxation agreement, individuals that are residents of one country but are receiving income in another contracting state, or vice versa, can avoid being taxed twice for the same income, property or investment.
It provides tax relief in the form of exemptions or preferential tax rates to avoid double taxation.
The DOF said such agreement prevents tax evasion and encourages foreign trade and investments between countries.
The Philippines has existing double taxation agreements with several countries, including the US, Switzerland, the United Kingdom and Northern Ireland, United Arab Emirates, Thailand, Australia and Germany.
Source: https://www.philstar.com/business/2020/01/07/1982577/philippine-cambodia-working-double-taxation-deal