Phl, Ireland drafting double taxation agreement

The governments of the Philippines and Ireland recently held the first round of negotiations on a proposed bilateral agreement that aims to avoid double taxation on individuals and companies in both countries.

Finance Undersecretary Antonette Tionko said the first round of talks, held recently at Ayuntamiento de Manila in Intramuros, covered discussions on avoiding double taxation on income and capital gains as well as the prevention of tax evasion and avoidance.

The Philippines has existing double taxation treaties (DTAs) with several countries, including the United States, Switzerland, the United Kingdom and Northern Ireland, United Arab Emirates, Thailand, Australia and Germany.

Under the DTA, individuals that are residents of one country but receiving income in another contracting state or vice versa avoid being taxed twice for the same income, property or investment.

Such DTA also prevents tax evasion and encourages foreign trade and investments between countries.

Tionko, who heads the Revenue Operations Group (ROG) of the Department of Finance (DOF), said the taxes to be covered, provisions on Residents and Immovable Property and Business Profits, among others, “have already been mutually agreed upon.”

“Further, both delegations undertook to review outstanding items with their respective authorities. Once completed, arrangements will be made regarding the second round of negotiation to take place at a mutually agreed place and date,” Tionko said.

Also part of the Philippine delegation were Assistant Secretary Dakila Elteen Napao of the DOF-ROG and Deputy Commissioner Marissa Cabreros and Larry Barcelo of the Bureau of Internal Revenue (BIR) legal group.

Anne Margaret Gormley, director for the Tax Treaties Branch, Office of the Revenue Commissioners of Ireland, led the Irish delegation. (DOF)