Phl, Singapore begin talks to update 1977 tax deal

The Philippines and Singapore have started negotiations to update their nearly five-decade-old Double Taxation Agreement (DTA), the Department of Finance (DOF) announced Thursday.

The first round of talks was held in Manila from Sept. 2 to 4, covering measures to eliminate double taxation on income and prevent tax evasion and avoidance.

Finance Secretary Ralph Recto said the review is long overdue. “The DTA between the Philippines and Singapore has been in place for almost 50 years. It’s high time we recalibrate the terms to reflect the realities of today’s rapidly shifting global economy,” he noted.

Singapore Ambassador to the Philippines Constance See underscored the importance of the negotiations, saying the updated DTA would “increase the flow of trade and investment and give a very positive signal to the business community.”

Singapore’s foreign direct investments in the Philippines have grown 14 percent in the past five years, a sign of sustained confidence in the country’s economic prospects, according to See.

The talks also reaffirmed the two nations’ strong ties in trade, investment, security, culture, and people-to-people relations, with more than 200,000 Filipinos living in Singapore.

The Philippine panel was led by DOF Assistant Secretary Dakila Elteen Napao, while Inland Revenue Authority of Singapore Assistant Commissioner Angela Ang headed the Singapore delegation.