PH, Hong Kong begin talks on double taxation avoidance

The Philippines and Hong Kong have begun the initial round of negotiations for the Comprehensive Avoidance of Double Taxation Agreement (DTA).

In a statement on Tuesday, the Bureau of Internal Revenue (BIR) said Commissioner Romeo Lumagui Jr. led the Philippine Negotiating Panel in the initial round of talks for the DTA with the Hong Kong Special Administrative Region (SAR).

The Hong Kong SAR delegation was headed by Lumagui’s counterpart, Inland Revenue Department Commissioner Benjamin Chan Sze-wai.

The initial round of DTA negotiations was held from May 21 to 23, 2025, at the Inland Revenue Centre in Kowloon, Hong Kong.

The BIR said three-day discussions reaffirmed the Philippines’ commitment to strengthening international tax cooperation, fostering economic partnerships, and ensuring fair and equitable taxation on cross-border income.

The Bureau of Internal Revenue (BIR) said Commissioner Romeo Lumagui Jr. and Hong Kong SAR Inland Revenue Department Commissioner Benjamin Chan Sze-wai. Photo from BIR

“We recognize the importance of the DTA in fostering economic growth, promoting investment, and providing clarity for businesses and individuals operating in both jurisdictions. The BIR is open to all international discussions that aims to promote the economic situation of all parties. We are here to find a win-win solution for all our international partners,” said Lumagui.

The taxman said the inaugural round of negotiations saw both the Philippine and Hong Kong sides “engage in constructive discussions and exchange views on key provisions of the proposed treaty,” which included mechanisms to prevent double taxation, tax relief measures, and frameworks for mutual cooperation between the two tax authorities.

“These matters require further deliberation to reach a comprehensive and equitable outcome that serves the best interests of both the Philippines and Hong Kong,” said Lumagui.

The BIR said the Philippine and Hong Kong SAR negotiating panels have agreed to hold a second round of negotiations at a mutually convenient date to resolve outstanding issues and finalize the agreement. —VAL, GMA Integrated News