The Philippines and Hong Kong have officially started negotiations for a Comprehensive Avoidance of Double Taxation Agreement (DTA), aiming to strengthen economic ties and ensure fair taxation for cross-border transactions.
The initial round of talks was held from May 21 to 23, 2025, at the Inland Revenue Centre in Kowloon, with Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. leading the Philippine delegation and Commissioner Benjamin Chan Sze-wai heading the Hong Kong Special Administrative Region (SAR) team.
According to the BIR, discussions focused on key provisions of the proposed agreement, including mechanisms to prevent double taxation, tax relief measures, and mutual cooperation frameworks to address tax challenges for businesses and individuals operating in both jurisdictions.
“We recognize the importance of the DTA in fostering economic growth, promoting investment, and providing clarity for businesses,” said Lumagui, emphasizing the Philippines’ openness to international agreements that promote shared prosperity.
While both sides made notable progress, unresolved issues remain, requiring further deliberation to ensure a fair and balanced outcome. A second round of negotiations is already being planned.
This comes after the Philippines signed a similar agreement with Cambodia earlier this year, aiming to eliminate double taxation, prevent tax evasion, and enhance bilateral trade and investment. The DTA covers a wide range of income sources, including business profits, dividends, interests, royalties, and capital gains.
The proposed PH-Hong Kong DTA is expected to boost investor confidence, promote transparency, and streamline tax obligations for stakeholders in both economies.
