PH to pitch Asean TIN, forge regional tax treaties
The Philippines’ Finance chief will propose to the members of the Association of the Southeast Nations (Asean) the establishment of a regional tax identification number (TIN), and the forging of bilateral tax treaties throughout the region.
Finance Secretary Cesar V. Purisima will attend Saturday’s 19th Asean Finance Ministers’ Meeting in Kuala Lumpur, Malaysia, where the region’s finance heads “will examine progress on the Asean infrastructure financing mechanism, the Asean insurance cooperation, as well as cooperation in customs, anti-money laundering and counter-terrorism financing,” the Department of Finance (DOF) said in a statement.
“I am joining my fellow Asean finance ministers in Kuala Lumpur to take stock of our progress on financial integration and cooperation. Moving forward, we will focus on our shared goal to implement our commitments under the Asean economic community [AEC] of 2015 more forcefully,” Purisima said.
According to the DOF, Purisima will urge his colleagues to “hasten and strengthen” the implementation of AEC taxation initiatives, especially the exploration of the economic impact of putting in place a harmonized tax rate on financial instruments.
Purisima will also seek expedited negotiations on bilateral tax treaties with other Asean members with whom the Philippines still lacks an agreement.
According to the Bureau of Internal Revenue (BIR), the Philippines has yet to sign a double taxation agreement (DTA) with Cambodia, Laos and Myanmar.
Revenue Commissioner Kim S. Jacinto-Henares recently told reporters that the three countries would be the “priority” for DTA negotiations in 2015.
Also, the DOF said Purisima would push for an Asean TIN, similar to the Asia-Pacific Economic Cooperation (Apec) TIN being proposed by the Philippines under the Cebu Action Plan.
The Cebu Action Plan aims to make Apec’s 21 member-economies more financially integrated, transparent and resilient. The plan will also focus on infrastructure development.
“I highly look forward to offering insights on our proposed Cebu Action Plan in Apec as a way to enhance our progress in Asean. For example, part of our vision for an integrated region is to see interlinked economies with ease of access to credit and finance, especially for small-income households and SMEs [small and medium enterprises]. This ensures that an integrated Asean is one that is inclusive,” Purisima said.
Apart from the Philippines, Asean groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
