The Philippine government is pursuing 10 double taxation agreements (DTAs) as part of efforts to attract more foreign direct investments (FDIs) and generate jobs, according to Finance Secretary Frederick Go.
He said three of the 10 DTAs are currently under renegotiation, while the remaining agreements are at various stages of discussion with countries across different regions.
“The first one you all know is Japan because it was recently renegotiated there. And there are two more ongoing renegotiations — that’s Singapore and Hong Kong,” he said.
The Finance chief added that the government is also pursuing DTAs with Liechtenstein, Cambodia, Laos and Ireland, while discussions with Malaysia, Luxembourg and South Korea remain in the early stages.
Agreements between countries
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 before they are finalized and implemented.
“[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, noting that higher FDI inflows create more jobs for Filipinos.
Net inflows
The Bangko Sentral ng Pilipinas earlier reported that FDI net inflows reached $7.8 billion in 2025, down 17.1 percent from the previous year and the lowest level since the height of the Covid-19 pandemic.
FDI inflows remained subdued in the first quarter of 2026, declining 16.9 percent to $1.72 billion from $2.07 billion in the same period a year earlier.
As part of broader efforts to attract investments, Go also said the government is considering the adoption of a Qualified Domestic Minimum Top-up Tax under the OECD’s Pillar Two global minimum tax framework.
“It’s a group of countries that all agreed to follow these rules. And the rate prescribed is 15 percent. That’s the minimum,” he said.
“[I]f you follow that minimum and you don’t touch it, it does not affect any of the foreign direct investors. Jjust like a global taxation agreement, the 15 percent that they pay us here, they don’t have to pay it again in their home jurisdiction,” Go added.
He noted that the framework applies only to multinational enterprises operating in, or headquartered in, jurisdictions that have adopted the Pillar Two rules. Companies with annual revenues below p750 million are exempt from the global minimum tax regime.