The Philippines and the Lao People’s Democratic Republic (PDR) successfully conducted the first round of negotiations for its Double Taxation Agreement (DTA) on December 4-6, 2024 in Luang Prabang, Lao PDR.

The Department of Finance (DOF) led the negotiations for the Philippines, which is in line with its commitment to the ASEAN Forum on Taxation to complete the ASEAN DTA network.

The DTA aims to eliminate double taxation in terms of income taxes and prevent opportunities for non-taxation or reduced taxation through tax evasion or avoidance in cross-border transactions of Philippine and Lao PDR taxpayers.

“This initiative is a testament to the DOF’s strong commitment to safeguarding the integrity of our tax system by closing loopholes and preventing tax evasion. More importantly, it symbolizes our collective resolve to deepen economic cooperation and strengthen diplomatic ties between the Philippines and Lao PDR. By working together to address cross-border taxation issues, we aim to promote greater trade, investment, and development opportunities,” Finance Secretary Ralph G. Recto said.

“As you are aware, Lao PDR and the Philippines are both members of ASEAN, and we continuously support each other at regional and international levels. Aligned with ASEAN Framework Agreements and our mutual dedication to expanding the DTA network, these negotiations represent our joint intention to strengthen cooperation within our community,” Deputy Director of the Lao Tax Department Saymanolinh Sinbandhit said.

Lao PDR ranks 84th among the Philippines’ trading partners.

Priority sectors for investment promotion to Lao PDR include business services, consumer brand marketing companies, industrial goods marketing companies, agro and food processing, and training institutions.

The Philippine delegation to the said negotiation was composed of DOF Revenue Operations Group (ROG) Assistant Secretary Dakila Elteen M. Napao, ROG Director Euvimil Nina R. Asuncion, Bureau of Internal Revenue (BIR) OIC-Deputy Commissioner for Legal Larry M. Barcelo, and International Tax Affairs Division Chief Robbie M. Bañaga.

Meanwhile, the Lao PDR delegation included International Tax Cooperation Division Director Sivay Vilaihan, with members Tax Audit Division Director Vongsavanh Dethvongsa, Legal Division Acting Director Kongsy Namvavongmixay, VAT and Excise Tax Administrator Division Deputy Director Phaypany Choummaly, International Tax Cooperation Division Deputy Director Athitnakone Phimmasone.

With the ASEAN region, the Philippines already forged DTAs with Brunei Darussalam, Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

It has also recently concluded its DTA negotiations with Cambodia, and is scheduled to sign the same in February 2025.