Phl, Hong Kong Negotiate Double Taxation Agreement

The Philippines and Hong Kong have started the first round of negotiations for their double taxation agreement (DTA) in a bid to boost business confidence and spur economic growth.

- By LOUISE MAUREEN SIMEON

Bureau of Internal Revenue (BIR) commissioner Romeo Lumagui Jr. said the negotiating teams of the two countries conducted last week the first round of discussions of the DTA — also known as tax treaties.

Key provisions of the tax treaty include mechanisms to prevent double taxation, tax relief measures and frameworks for mutual cooperation between the tax authorities of both countries.

"While significant progress has been made in outlining the provisions that will govern taxation of cross-border income, several outstanding issues remain to be addressed in the next round of negotiations," Lumagui told The STAR.