Philippines, Ireland start talks on double taxation agreement

MANILA, Philippines — The Philippines and Ireland have started talks on a proposed bilateral deal that seeks to avoid double taxation on individuals and companies in both countries, the Department of Finance said Wednesday.

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

"While there are other provisions that need to be considered by the Philippines like Permanent Establishment and Entitlement to Benefits, the provisions on Persons Covered, the taxes to be covered, provisions on Residents and Immovable Property, and Business Profits, among others, have already been mutually agreed upon," Tionko said.

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. 

With a DTA in place, 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.

Tax relief to avoid double taxation may come in the form of exemptions or preferential tax rates. — Ian Nicolas Cigaral