In a significant move to enhance economic cooperation, President Ferdinand R. Marcos Jr. and Cambodian Prime Minister Samdech Moha Borvor Thipadei Hun Manet oversaw the signing of a double taxation agreement (DTA) on February 11, 2025, at Malacañan Palace. The agreement, part of a broader set of deals signed during Hun Manet’s visit, aims to eliminate double taxation and foster stronger economic relations between the two countries.
Finance Secretary Ralph Recto emphasized the importance of the DTA, stating that it would enhance the integrity of the Philippine tax system. He highlighted that the agreement would remove tax barriers, promote a transparent tax framework, and attract more foreign investments into the Philippines, thereby strengthening regional trade ties.
The DTA was signed by Recto and Cambodia’s Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Prak Sokhonn. It covers various taxation aspects, including income from business profits, dividends, interests, royalties, and capital gains, ensuring a fair and efficient tax system for businesses and individuals in both countries.
The agreement also includes provisions for the exchange of tax information and mechanisms for resolving disputes, aligning with international standards on tax transparency and anti-base erosion and profit shifting initiatives. It is expected to reduce fiscal barriers, stimulate bilateral trade and investment, and contribute to stronger economic ties between the Philippines and Cambodia.
The DTA was finalized after three rounds of negotiations, with the last round completed in Manila in April 2024. The agreement will take effect once ratified by the legislative bodies of both nations.
The signing of the DTA was part of Prime Minister Hun Manet’s two-day official visit to the Philippines, aimed at strengthening bilateral relations and advancing collaborations in key sectors. President Marcos underscored the significance of the DTA, noting its role in facilitating greater bilateral investments and economic activities between the business sectors of both countries.