Philippines, Brunei sign 'mutually beneficial' deal on avoidance of double taxation

ABS-CBN News

Posted at Jul 16 2021 03:11 PM

Philippines, Brunei sign 'mutually beneficial' deal on avoidance of double taxation 1
Department of Finance (DOF) Secretary Carlos G. Dominguez of the Philippines and Yang Berhormat Dato Seri Setia Dr. Awang Haji Mohd Amin Liew bin Abdullah, the Minister at the Prime Minister’s Office and Minister of Finance and Economy II of Brunei Darussalam hold their copies of the double taxation agreement they signed on behalf of their respective governments this morning, July 16, 2021, in Brunei’s capital city of Bandar Seri Begawan. Handout

MANILA - The Philippines and Brunei Darussalam signed an agreement in a bid to eliminate double taxation and prevent fiscal evasion on taxes involving income from cross-border transactions, the Finance department said Friday.

The Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect To Taxes on Income (double taxation agreement or DTA), expected to strengthen economic activity between the 2 countries, was signed on July 16, the DOF said in a statement.

The deal will ideally help the Philippines recover from the COVID-19 pandemic, ease trade in goods and services between the 2 countries, strengthen economic cooperation and enhance investment flows, Finance Secretary Carlos Dominguez III said.

“I look forward to heightened cooperation between our two countries as we both exert all our efforts to recover from the pandemic and rebuild the best possible future for our two peoples,” Dominguez said.

The DTA is also expected to generate more jobs for Filipinos in both countries since it could help bring in more foreign direct investments from Brunei or provide employment to Filipinos, the DOF said.

It is also expected to boost the transfer of technology and skills between the 2 countries.

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