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PH, Brunei ink pact to weed out double taxation

THE Philippines and Brunei Darussalam have signed the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect To Taxes on Income (double taxation agreement or DTA) arising from cross-border transactions between these two Southeast Asian countries.

The agreement was signed by Philippine Finance Secretary Carlos Dominguez III 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 Friday on behalf of their respective governments.

 

Dominguez assured the Philippines’ commitment to continue and deepen the coordination with the tax authorities of Brunei in ensuring the proper implementation of the DTA.

 

“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. Moreover, it will strengthen our economic cooperation and enhance investment flows and economic activity across our borders,” Dominguez said at the signing ceremony.

 

Dominguez thanked the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, who witnessed the signing of the DTA, “for bringing this document to fruition.”

 

“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,” he said. 

 

The DTA will further elevate the “close, warm and mutually beneficial” partnership between these two countries that have enjoyed strong ties since both established full diplomatic relations in 1984. 

 

The DTA will strengthen the Philippines’ commitment in the Asean Forum on Taxation (AFT) to complete a network of double taxation agreements among the member-states of the Association of Southeast Asian Nations (Asean).

 

The DTA is also expected to create more jobs for Filipinos in both countries, given that addressing the adverse effects of double taxation can help bring in more foreign direct investments (FDIs) from Brunei to the Philippines or get our workers employed in Brunei. PR