The Philippines and Ireland conducted the first round of talks on a proposed bilateral agreement to avoid double taxation on individuals and companies in both countries.
Finance Undersecretary Antonette Tionko said in a statement the discussions delved on avoiding double taxation on income and capital gains and the prevention of tax evasion and avoidance.
Tionko, who heads the revenue operations group of the Finance Department, led the Philippine delegation to the meeting.
“While there are other provisions that need to be considered by the Philippines like permanent establishment and entitlement to benefits, the provisions on persons covered, the taxes to be covered, provisions on residents and immovable property and business profits, among others, have already been mutually agreed upon,” Tionko said.
She said a working draft of a double taxation agreement between the Philippines and Ireland was being studied by both sides. Anne Margaret Gormley, director for the Tax Treaties Branch, Office of the Revenue Commissioners of Ireland, led the Irish delegation.
“The negotiation was conducted in a friendly atmosphere with mutual understanding, which allowed the two delegations to examine all of the Articles under discussion,” Tionko said.
She said both delegations were set to meet again to further deliberate on items that were not agreed upon during the initial round of talks.
“Further, both delegations undertook to review outstanding items with their respective authorities. Once completed, arrangements will be made regarding the second round of negotiation to take place at a mutually agreed place and date,” Tionko said.
The Philippines currently has existing double taxation treaties with several countries such as the United States, Switzerland, the United Kingdom and Northern Ireland, the United Arab Emirates, Thailand, Australia and Germany.
With a DTA in place, individuals that are residents of one country but receiving income in another contracting state or vice versa avoid being taxed twice for the same income, property or investment.
The DTA also prevents tax evasion and encourages foreign trade and investments between countries.