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.