THE PHILIPPINES and Hong Kong recently started the initial round of talks for the Comprehensive Avoidance of Double Taxation Agreement (DTA).
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. led the Philippine Negotiating Panel in the initial round of talks for the DTA with the Hong Kong Special Administrative Region (SAR) of the People’s Republic of China.
The Hong Kong SAR delegation was headed by Commissioner Benjamin Chan Sze-wai of the Inland Revenue Department.
In a statement Tuesday, the BIR said the negotiations were held from May 21 to 23, 2025, at the Inland Revenue Centre in Kowloon.
During the meeting, the Philippines reaffirmed its commitment to strengthening international tax cooperation, fostering economic partnerships, and ensuring fair and equitable taxation on cross-border income.
The BIR said key provisions of the proposed treaty including the mechanisms to prevent double taxation, tax relief measures, and frameworks for mutual cooperation were discussed during the meeting.
“We recognize the importance of the DTA in fostering economic growth, promoting investment, and providing clarity for businesses and individuals operating in both jurisdictions. The BIR is open to all international discussions that aim to promote the economic situation of all parties. We are here to find a win-win solution for all our international partners,” Lumagui said.
While significant progress was made, Lumagui cited the need to carefully address the remaining open issues to ensure a fair and balanced agreement.
“These matters require further deliberation to reach a comprehensive and equitable outcome that serves the best interests of both the Philippines and Hong Kong,” he said.
The Philippine and Hong Kong SAR negotiating panels have agreed to hold a second round of negotiations to resolve the remaining issues and finalize the agreement.
Earlier this year, the Philippines signed a similar agreement with Cambodia.
The DTA is designed to eliminate double taxation on income earned in the Philippines and Cambodia, prevent tax evasion, and enhance economic cooperation.
It is expected to reduce fiscal barriers and stimulate bilateral trade and investment, contributing to stronger economic ties between the two nations.
Specifically, the agreement covers various aspects of taxation, including income from business profits, dividends, interests, royalties, capital gains, and other sources of revenue, ensuring a fair and efficient tax framework for businesses and individuals operating in both jurisdictions. (Anna Leah Gonzales)
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