||Asean Affairs 26 June 2013
Philippines signs new tax bilateral treaty with Thailand
After more than 14 years of discussions, the Philippines and Thailand have finally signed a new bilateral tax treaty.
Top officials of the Bureau of Internal Revenue (BIR) said the two countries decided to revise the 31-year-old accord to make it more relevant to present day tax conditions.
The agreement was signed by Foreign Affairs Secretary Alberto del Rosario and Thailand Deputy Prime Minister of Foreign Affairs Surapong Tovichakchaikul at the Department of Foreign Affairs last week.
At present, Manila has tax treaty arrangements with 36 other countries, including the United States, Canada, Japan, Italy, France, Australia and other European and South-East Asian states.
The tax treaty convention is aimed at promoting international trade and investments, eliminating double taxation of income of its citizens and corporations.
To illustrate, revenue officials said if boxing champion Manny Pacquiao pays income tax in the United States for his prize money, that payment is deductible from his income tax liabilities here.
The tax agreement is also intended for the contracting countries to better enforce their tax and other domestic laws, and reduce the incidence of tax evasion via exchange of information.