Philippines and Singapore conclude talks to update their 1977 tax treaty

The Philippines and Singapore have concluded negotiations to update their Double Taxation Agreement, first concluded in 1977, which is expected to provide clearer and more predictable tax rules for cross-border income between the two countries.

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The Philippines and Singapore have concluded negotiations to update their tax treaty, the Philippine Department of Finance (DOF) announced on 2 October. The agreement was reached during four-day negotiations held in Singapore from 22 to 25 September.

The renegotiation seeks to update the Double Taxation Agreement (DTA), originally concluded in 1977, to reflect developments in the economies and international tax landscape of both countries. According to the DOF, the modernisation will provide clearer and more predictable tax rules for cross-border income, strengthen cooperation between tax authorities, and ensure fair taxation between the two countries.

"The Philippines is committed to strengthening tax cooperation across the region. The renegotiation of the DTA will help modernize our tax framework to support investment and economic growth while protecting our legitimate taxing rights," Finance Secretary Frederick D. Go said.

The DOF said the update is particularly important given the Philippines' deep and growing economic ties with Singapore, an important investment and trading partner, and that the movement of professionals, workers, businesses, capital, technology and services between the two countries continues to support economic activity. The Philippine team was led by DOF Assistant Secretary Euvimil Nina R. Asuncion, while the Singapore team was led by Inland Revenue Authority of Singapore (IRAS) Assistant Commissioner Angela Ang.