MANILA — The Philippines and Japan have concluded formal negotiations to update their Double Taxation Convention (DTC), a move aimed at modernizing the tax framework governing income earned by citizens and residents of both countries, the Department of Finance (DOF) said Tuesday.
The talks, led by the DOF, were held from January 27 to 30 and resulted in the completion of the revised treaty after a single round of formal negotiations.
Finance Secretary Frederick Go said the agreement reflects the two nations’ shared commitment to deepening their long-standing economic partnership through a clearer and more equitable tax framework.
“As one of the Philippines’ most vital and enduring economic partners, the negotiation with Japan underscores our countries’ mutual commitment to strengthening partnership by providing a clear, modern, and equitable tax treaty framework,” Go said.
The updated DTC outlines how each country will impose taxes and grant credits for taxes already paid, helping ensure compliance with the tax laws of both jurisdictions. The DOF said the revised treaty is designed to support cross-border economic activity while protecting the integrity of both nations’ tax systems.
According to the department, the agreement will proceed through each country’s respective legal approval processes and will take effect 30 days after the exchange of diplomatic notes confirming ratification.
DOF-Revenue Operations Group Undersecretary Rolando Ligon said the renegotiation aligns the treaty with current international standards and strengthens measures to address tax evasion and avoidance.
“Through these renegotiations, we seek to align our Convention with contemporary international standards, promote certainty and fairness for taxpayers, and reinforce our shared commitment to combating tax evasion and avoidance,” Ligon said.
The update coincides with the 70th anniversary of diplomatic relations between the Philippines and Japan this year, underscoring the broader context of enhanced bilateral cooperation.
Japan’s Minister for Economic Affairs Yokota Naobumi expressed optimism that the amended treaty would encourage greater Japanese investment in the Philippines.
“I sincerely hope that the amendment to the tax treaty will be concluded at an early stage and that this year will truly become one of significant progress in our bilateral relationship,” Yokota said.
The Philippine negotiating team included DOF-Revenue Operations Group Assistant Secretaries Dakila Elteen Napao and Euvimil Nina Asuncion, along with Bureau of Internal Revenue Deputy Commissioner for Legal Larry Barcelo and International Tax Affairs Division Chief Robbie Bañaga.
The Japanese delegation was led by Yokota and included Embassy of Japan Second Secretary Narita Akihiro, as well as officials from Japan’s Ministry of Finance Tax Bureau: Director for Tax Treaties and International Affairs Hisanaga Takuma, Deputy Directors Nishijima Hiromitsu and Tanaka Kyohei, and Section Chief Kawashima Ayaka.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
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