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Louise Maureen Simeon - The Philippine Star
May 26, 2025 | 12:00am
Bureau of Internal Revenue (BIR) commissioner Romeo Lumagui Jr. said the negotiating teams of the two countries conducted last week the first round of discussions of the DTA – also known as tax treaties.
STAR / File
MANILA, Philippines — The Philippines and Hong Kong have started the first round of negotiations for their double taxation agreement (DTA) in a bid to boost business confidence and spur economic growth.
Bureau of Internal Revenue (BIR) commissioner Romeo Lumagui Jr. said the negotiating teams of the two countries conducted last week the first round of discussions of the DTA – also known as tax treaties.
Key provisions of the tax treaty include mechanisms to prevent double taxation, tax relief measures and frameworks for mutual cooperation between the tax authorities of both countries.
“While significant progress has been made in outlining the provisions that will govern taxation of cross-border income, several outstanding issues remain to be addressed in the next round of negotiations,” Lumagui told The STAR.
“These matters require further deliberation to ensure a balanced and equitable agreement that serves the interests of both the Philippines and Hong Kong,” he said.
Double taxation occurs when the same taxes are slapped twice, either on the same object or income, by different authorities which often lead to increased tax burdens and reduced profits.
Currently, the Philippines has around 40 DTAs with several countries.
DTAs are aimed at removing tax barriers and ensuring that a tax framework is fair and transparent, not only to boost foreign investments but to strengthen trade ties as well.
According to Lumagui, both negotiating panels have reaffirmed their commitment to resolving open issues through continued collaboration and technical discussions.
“We recognize the importance of the DTA in fostering economic growth, promoting investment and providing clarity for businesses and individuals operating in both jurisdictions,” Lumagui said.
As of end-2024, Hong Kong is the fourth largest export market for the Philippines, valued at $9.6 billion or 13 percent of total.
In terms of imports, Hong Kong ranked 16th with total value at $2.04 billion.
The Philippines and Hong Kong will schedule a second round of negotiations to facilitate a thorough review of the DTA.
Lumagui was joined by Department of Finance Assistant Secretary Dakila Napao and director Euvimil Nina Asuncion and BIR deputy commissioners Larry Barcelo and Robbie Banaga of the International Tax Affairs Division.
Hong Kong’s negotiating panel was headed by its Inland Revenue Department commissioner Benjamin Chan Sze-wai.
