Updated agreement
The updated agreement is expected to provide clearer and more predictable tax rules for cross-border economic activities, 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 renegotiation seeks to bring the nearly five-decade-old agreement in line with changes in both countries’ economies and developments in international taxation.
The update comes as the Philippines and Singapore maintain growing economic ties, with the movement of professionals, workers, businesses, capital, technology and services between the two countries supporting economic activity.
Go earlier in June confirmed that the DTAs with Singapore and Hong Kong were under renegotiation.
He also said the government was pursuing DTAs with Liechtenstein, Cambodia, Laos and Ireland, while discussions with Malaysia, Luxembourg and South Korea remained in the early stages.
Phl’s tax treaty network with ASEAN member states
The DoF said the renegotiation is part of its continuing efforts to strengthen and modernize the Philippines’ tax treaty network with ASEAN member states and keep existing agreements responsive to current economic conditions and international tax developments.
DTAs are agreements between countries designed to prevent individuals and businesses from being taxed twice on the same income. Once in place, foreign companies operating in the Philippines can offset taxes paid locally against their tax obligations in their home jurisdictions, reducing their overall tax burden.
Go said such agreements help improve the ease of doing business and make the country more attractive to foreign investors, although negotiations often take several years to finalize and implement.
“[W]e know that we need help on investments. We have a lot of domestic investors, but I think why the Philippines has not been up to speed is because we lack foreign direct investments,” he said in June, noting that higher foreign investment inflows create more jobs for Filipinos.
Senate’s concurrence in Phl-Cambodia DTA
Meanwhile, the DoF welcomed the Senate’s concurrence in the Philippines-Cambodia DTA, which was signed in February 2025. The Senate concurrence brings the agreement closer to entry into force.
Once effective, the Philippines-Cambodia DTA will establish tax rules between the two countries, help prevent double taxation, and strengthen cooperation against tax evasion and avoidance.
The agreement is also expected to provide a more predictable tax framework for bilateral trade and investment and support the Philippines’ efforts to deepen tax cooperation within ASEAN.