PH, Singapore start talks to update 48-year-old tax treaty

The Philippines, through the Department of Finance, has begun negotiations with Singapore to modernize their 48-year-old Double Taxation Agreement (DTA).

Finance Secretary Ralph Recto emphasized the need to update the pact to align with current economic demands and boost bilateral investment, ensuring fairness for both nations.

The renegotiation is timely due to advancements in international taxation and the strong trade ties between the Philippines and Singapore.

Singapore Ambassador Constance See reported a 14 percent rise in direct investments in the Philippines since 2020.

The existing 1977 agreement stipulates that a company's profits are taxable in its home country unless it has a permanent establishment in the partner state.