The Philippines and Singapore have started negotiations to modernize a tax agreement that’s almost 50 years old, the Department of Finance (DOF) announced on September 25.
To move aims to attract more foreign businesses, strengthen economic ties, and create more jobs for Filipinos, DOF stated.
The two countries are updating the 1977 Double Taxation Agreement (DTA) to better suit today’s digital and global economy.
The update also aims to make it easier and cheaper for Singaporean companies to invest in the Philippines.
Finance Secretary Ralph Recto said the review is long overdue.
“It’s high time we recalibrate the terms to reflect the realities of today’s rapidly shifting global economy,” he said.
He also assured that the new deal will be fair to both countries and help generate more investments and jobs.
The move is part of the Philippine government’s initiative to attract more foreign investments, leading to improved technology, more business opportunities, and creation of more jobs.
Singapore’s Ambassador to the Philippines, Constance See said it will “increase the flow of trade and investment” and show the business community that both governments are committed to boosting economic activity.
Singapore is one of the top investors in the Philippines, with foreign investments growing by 14% over the past five years.
The first round of negotiations concluded successfully last September 2–4, with further talks expected in the coming months. — iNews PH
