PH, Germany to sign new tax treaty in 2013 | Inquirer Business

PH, Germany to sign new tax treaty in 2013

/ 07:39 PM July 27, 2012 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.

“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.

“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.

Subscribe to our business newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Department of Foreign Affairs, tax treaty in 2013
For feedback, complaints, or inquiries, contact us.

Subscribe to our business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.

© Copyright 1997-2021 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.