Quantcast
Saturday , December 16 2017
Breaking News
Home / International Customs / Philippines to sign tax pact with Brunei
Philippines to sign tax pact with Brunei

Philippines to sign tax pact with Brunei

MANILA: The Philippines is set to sign a double taxation agreement (DTA) with Brunei while eyeing to start negotiations with three other Asean countries as part of its commitments under the regional integration framework.

Internal Revenue Assistant Commissioner Marissa O. Cabreros told the Inquirer yesterday that the Philippines’ DTA with Brunei was ready for signature, although the two countries have yet to finalize schedule.

The preparation of documents for the negotiations of a DTA with Cambodia will start by yearend, while those for Laos and Myanmar will be calendared next year, Cabreros said.

The country has existing DTAs with the five other Asean member countries—Malaysia, Singapore, Thailand, Indonesia and Vietnam.

“Those four countries are our priority for the Philippines to meet and complete the scorecard for Asean integration” in terms of tax treaties, Cabreros said.

However, Indonesia had been requesting a renegotiation to update its DTA with the Philippines, while the updated DTA with Thailand would take effect upon the ratification of the renegotiated version, Cabreros said last year.

In all, the Philippines currently has more than 40 tax treaties—mostly DTAs and tax exchange information agreements—in force.

“If a nonresident has income source in the Philippines and is a resident in another country, he may be liable to pay tax in both countries under their tax laws. To avoid ‘double taxation’ in this situation, the Philippines has negotiated double taxation treaties with [other] countries. A nonresident in another country with which the Philippines has a double taxation treaty may be able to claim exemption or partial relief from the Philippines’ tax on certain types of income from Philippine sources,” the BIR explained on its website.