The Philippines and Brunei Darussalam have signed an agreement aimed at eliminating double taxation and preventing fiscal evasion on money derived from cross-border transactions between the two Southeast Asian countries, according to the Department of Finance (DoF).
The agreement was signed on Friday by Philippine Finance Secretary Carlos Dominguez 3rd 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, on behalf of their respective governments, the DoF said in a statement released the same day.
“This agreement will serve us well as we bounce back from the ravages of the global health crisis. It will further ease trade in goods and services between our two countries,” Dominguez highlighted at the signing.
He went on to remark that the agreement will deepen economic ties between the Philippines and Brunei, as well as increase investment and economic activity outside their respective boundaries.
“Rest assured, we will work to continue and deepen the coordination between our respective tax authorities in ensuring the proper implementation of the agreement and the enforcement of relevant tax laws,” Dominguez 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.”
The DoF added that the double taxation agreement (DTA) will strengthen the Philippines’ commitment to the Asean Forum on Taxation’s goal of completing an Association of Southeast Asian Nations or Asean network of double taxation agreements.
It also explained that, in addition to improving bilateral relations with Brunei, the DTA is expected to generate more jobs for Filipinos in both countries, as addressing the negative effects of double taxation can help bring in more foreign direct investments from Brunei to the Philippines or place Filipino workers in Brunei.
The DTA is also anticipated to facilitate the transfer of technology and skills between the two countries, the Finance department also pointed out.
BY MEYNARD DELA CERNA