PH, Germany to sign new tax treaty in 2013
dfa.gov.ph photo
MANILA, Philippines —- The Philippines and Germany will be signing a new tax treaty in 2013, which the Department of Foreign Affairs (DFA) described as an agreement that would boost the two countries’ trade and investment ties.
“This new tax treaty will provide German investors with certainty and guarantees in the area of taxation,” Philippine Ambassador to Germany Maria Cleofe R. Natividad said in a statement.
“It will bolster our economic diplomacy efforts here in Germany,” Natividad said.
The statement noted that the two countries have concluded the third and final round of negotiations on the said treaty, called the Agreement for the Avoidance of Double Taxation with respect to Taxes on Income and Capital, on July 20 at the Federal Ministry of Finance in Berlin.
It also said that all outstanding issues on the said accord have been resolved during the last round of the five-day negotiations, with both sides agreeing on the adoption of new standards in the tax treaty.
Article continues after this advertisement“The new tax treaty is designed to protect against the risk of double taxation where the same income is taxable in the Philippines and Germany,” it said.
Article continues after this advertisement“It is also aimed at preventing fiscal evasion and fostering cooperation between Philippine and other tax authorities by enforcing their respective tax laws,” it added.
It also said that both sides agreed to ensure completion of their respective domestic requirements for the ratification of the treaty set for next year.
The Philippine delegation to the said negotiations was composed of Bureau of Internal Revenue Commissioner Kim Jacinto-Henares, Finance Undersecretary Carlo Carag, BIR Assistant Commissioner Marissa Cabreros, BIR International Tax Division lawyer Charadine Bandon, and DFA director Mersole Mellejor.
Natividad, on the other hand, represented the Philippine Embassy. She was joined by Third Secretary Azela Arumpac and Finance Attache Generosa Balocating.
The German delegation was headed by Dr. Wolfgang Lasars of the Federal Ministry of Finance. He was assisted by senior tax expert Simone Richter, legal expert Heinz-Josef Johansmeier, Sven Green, and Nadine Lichtblau of the Federal Ministry of Economy and Technology.
The statement also noted Germany as a significant economic partner of the Philippines, with total trade valued at $2.9 billion from January to November 2011. Germany was also noted as the biggest export market for Philippine goods in Europe.
