Taiwan Signs Double Tax Agreement With The Philippines

by Mary Swire, Tax-News.com, Hong Kong

31 May 2002

It was announced this week that the Philippines and Taiwan have signed an agreement designed to prevent double taxation of income and promote trade and investment between the two countries.

The treaty, signed by government officials, and witnessed by Taiwan's Finance Minister, Lee Yung-san, and the Secretary of Finance for the Philippines, Jose Isidro N. Camacho, has been in the pipeline for a long time, despite the already close relationship between the two countries.

Speaking following the signing of the agreement, the Filipino Finance Secretary praised the 'efficiency and mutual understanding in the recent endeavours for the conclusion of the agreement' shown by negotiating teams on both sides.

According to the Taiwanese Finance Minister, the treaty - as agreed upon on Wednesday - includes provisions for the avoidance of double taxation on business profits, shipping and air transport, dividends, interest, and royalties.

Mr Camacha commented that: 'I am sure that the agreement will improve international trade and promote friendship between our two countries.' According to a recent report from the eTaiwan News service, last year, total accumulated Taiwanese investment in the Philippines stood at around US$1 billion, while approved Filipino investment in Taiwan was estimated at US$1.1 billion.

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