The governments of the Philippines and Italy have signed the amendments to the Double Taxation Agreement (DTA) for a more competitive and fair taxation between the two countries, the Department of Finance (DOF) announced on Monday.
Through the DOF and the Bureau of Internal Revenue, the Philippine government negotiated and concluded the Protocol Amending the Convention between the Philippines and the Italian Republic for the Avoidance of Double Taxation, with respect to Taxes in Income and Prevention of Fiscal Evasion originally signed on December 5, 1980.
Finance Secretary Cesar Purisima and Italian Ambassador to the Philippines Massimo Roscigno led the signing of the DTA at the DOF office in Manila.
The agreement seeks to remove the Philippines from Italy’s blacklist of tax haven countries of those which have privileged tax regimes for the purpose of attracting foreign investments in their territories.
“We welcome the signing of the Philippine-Italy Double Taxation Agreement as a positive step toward competitiveness and fairness in taxation between our countries,” Purisima said.
The Finance chief added that with the signing of the agreement, the Italian authorities would remove the Philippines from its blacklist of tax havens, for the benefit of Italians residing in the Philippines, and the Filipinos in Italy who comprise the fourth-largest immigrant nationality group.
“In particular, the signing amended Article 25 of the Italy-Philippines DTA on the Exchange of Information, in accordance with the current tax treaty model of the Organization for Economic Cooperation and Development and the United Nations, incor-porating changes in the tax system of Italy,” DOF stated.
It added that the protocol will need to be subsequently ratified and concurred into by the respective authorities of both governments.