Photo credit: PCO

In a bilateral meeting on the sidelines of the 50th Australia-ASEAN Special Summit in Melbourne, President Ferdinand Marcos Jr. assured Cambodia Prime Minister Hun Manet that the Philippines government is actively working to address the longstanding issue of double taxation between the two nations.

President Marcos emphasized the urgency of resolving the double taxation matter, stating, "We are working very hard on the issue of double taxation between our two countries. If we are going to talk about increased trade between Cambodia and the Philippines, that has to be sorted out, we cannot leave it there."

He further assured Prime Minister Hun that the Philippines has successfully navigated similar challenges with other countries in Asia and expressed confidence in finding a satisfactory solution.

In response, Prime Minister Hun Manet affirmed Cambodia's commitment to working on the issue. He highlighted Cambodia's ongoing efforts to improve trade and investment systems with various countries, underscoring the importance of such initiatives in fostering economic partnerships.

The discussions between the Philippines and Cambodia on the double taxation agreement began in 2018 during a meeting in Manila, with both nations actively pursuing solutions in the subsequent years. The agreement aims to ensure that residents of one country receiving income in another contracting state, or vice versa, will not face double taxation on the same income, property, or investment.

Key provisions of the agreement include tax relief in the form of exemptions or preferential tax rates, preventing tax evasion while simultaneously encouraging foreign trade and investments between the two nations. The collaborative efforts signify a significant step towards enhancing economic ties and promoting a conducive environment for cross-border business activities.