PH, Singapore begin talks to update 5-decade-old pact vs. double taxation

The Philippines and Singapore have started negotiations to update a pact entered into by the two neighbor countries nearly five decades ago to prevent double taxation.

In a statement on Thursday, the Department of Finance (DOF) said the two countries concluded the first round of negotiations to tweak the August 1977 Philippines-Singapore Convention for the “Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income from September 2 to 4, 2025.

The Finance Department said the Philippine delegation was led by DOF Assistant Secretary Dakila Elteen Napao, while the Singapore delegation was headed by Inland Revenue Authority of Singapore Assistant Commissioner Angela Ang.

The double-taxation avoidance pact between the Philippines and Singapore basically ensures that individuals or businesses operating in both countries are not taxed twice on the same income such as on profits, interests, employment, or capital gains.

The DOF said updating the 48-year-old pact was meant to “keep pace with the demands of the modern economy and strengthen bilateral and investment relations that will translate to more jobs for Filipinos.”

It added that the negotiations for the Philippines-Singapore double taxation pact is in line with the government's agenda of attracting more foreign direct investments (FDIs) by enhancing investor certainty, lowering transaction costs, and enabling greater trade and technology transfer—all of which are expected to drive growth and create more opportunities for Filipinos.

“The DTA between the Philippines and Singapore has been in place for almost 50 years. It’s high time we recalibrate the terms to reflect the realities of today’s rapidly shifting global economy,” said Finance Secretary Ralph Recto.

Moreover, Recto said that reviewing the pact is especially timely given significant developments in international taxation as well as the robust trade and investment relations between the Philippines and Singapore robust trade and investment relations and the presence of more than 200,000 Filipinos in the Southeast Asian neighbor.

For her part, Singapore Ambassador to the Philippines Constance See said that “renegotiating the DTA (double taxation agreement) will be very important to increase the flow of trade and investment and give a very positive signal to the business community that our governments share a commitment to enhancing the cross-border economic activity.”

The envoy said that Singapore’s FDIs in the Philippines increased by 14% over the past five years, which reflects Singaporean businesses’ continued confidence in the Philippines’ growth story. — Ted Cordero/BM, GMA Integrated News