MANILA, Philippines—The Philippines and Germany on Thursday signed a tax agreement to prevent double taxation and promote trade and investments between the two countries.
The Department of Finance said in a statement that the tax deal was concluded last Sept. 9 in Berlin. The Philippines was represented by Finance Secretary Cesar Purisima while Germany was represented by Martin Ney, legal adviser of the German Foreign Ministry.
With a tax treaty, German companies doing business in the Philippines and Filipino companies operating in Germany need not suffer from double taxation. This means they are not liable to pay the same taxes to German and Philippine governments.
“We are honored and pleased to sign this latest set of amendments to our Double Taxation agreement with Germany,” Purisima said.
Apart from promoting investments, the agreement also aims to preventing tax evasion.
Under the agreement, the Philippines and Germany may share information and assist both governments in going after tax evaders.
“By signing this, we also renewed the commitment between both of our countries to promote tax transparency as an international priority, and to help each other fight tax evasion in our respective jurisdictions,” Purisima added.—Michelle V. Remo