MIRIAM SPONSORS THE AVOIDANCE OF DOUBLE TAXATION TREATIES

“The DTAs will be beneficial for the Philippines because it will encourage the flow of foreign investments capital and facilitate the flow of information between our tax authorities and theirs to enable them to better prevent tax evasion,” Santiago said.

In her speech, Santiago said that the amendments on the treaties reflect current tax policies and favor a balance of taxation rights between the Philippines and the other three contracting states.

In the Philippines, double taxation treaties serve to 1) lessen the burden of overseas Filipino workers or overseas Filipino investors residing and/or doing business in another country; and 2) to attract foreign investments to the country by giving tax incentives to the investors of other nationalities.

Aside from preventing double taxation and tax evasion, the bilateral tax treaties aim to

• eliminate discrimination against foreign nationals and non-residents;
  
• open direct communication channels between the two tax administrations;
  
• provide venue for information exchange for contracting states;
  
• set up mechanism for resolving disputes arising from the interaction of tax systems; and
  
• increase the certainty regarding contracting states’ domestic laws for better mutual investments and trade.