The Department of Finance (DOF) has led the conclusion of the draft double taxation agreement (DTA) between the Philippines and Cambodia on April 19, 2024 to protect Filipinos’ taxing rights and increase trade and investment across economic borders. 

“The conclusion of this DTA marks a significant milestone in strengthening the Philippines and Cambodia’s economic ties. Through this effort, we have not only complied with our commitment to completing the ASEAN DTA network, but the DOF and the BIR have also ensured that the taxing rights of Filipinos here and abroad are equitably preserved and protected,” Finance Secretary Ralph G. Recto said. 

Under the terms of the agreement, both Cambodia and the Philippines agree to mitigate the burden of double taxation on individuals and businesses operating across borders, which may contribute to the elimination of barriers to trade and investment and encouragement of cross-border economic activities.

 The DTA encompasses taxation of income earned by citizens and residents of the Philippines and Cambodia, and outlines how each country’s tax administration shall impose and credit taxes paid in accordance with the tax rules in both countries.

Negotiations on the DTA began in 2018 in Manila, and was followed through in 2019 in Siem Reap, Cambodia. 

Following the conclusion of the draft, the Philippines expects to hold the signing of the DTA in October 2024.

 The delegation of Cambodia was headed by Dr. Seng Cheaseth, the Director of Law, Tax Policy and International Tax Cooperation, General Department of Taxation, Ministry of Economy and Finance of Cambodia.

Meanwhile, the Philippine delegation was composed of DOF Revenue Operations Group Assistant Secretaries Gerald Alan A. Quebral and Dakila Elteen M. Napao and Director Euvimil Nina R. Asuncion; and Bureau of Internal Revenue (BIR) Deputy Commissioner Marissa O. Cabreros, Assistant Commissioner Larry M. Barcelo, and Atty. Robbie M. Bañaga.

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