At the resumption of Senate Session today, January 21, Senator Loren Legarda said that she will seek the approval on third reading of three important international tax treaties.
“We are going to seek the approval of the Philippines-France Protocol, the Philippines-Qatar Tax Treaty, and the Philippines-Kuwait Tax Treaty. The benefits of tax treaties, especially to developing countries, cannot be gainsaid. They help the Contracting States to better enforce domestic laws so as to reduce tax evasion, and they likewise promote technology transfer, and international academic, cultural, and sports exchanges,” she explained.
Legarda, Chair of the Senate Committee on Foreign Relations, noted that the PH-France Protocol broadens the scope of information that may be exchanged relating to tax administration, including bank information.
She further stated that the Treaties with Kuwait and Qatar work toward the elimination of double taxation by allowing as credit the taxes paid or accrued under the laws of Kuwait against Philippine tax, subject to certain limitations.
“These two treaties include articles whereby the Contracting States can exchange necessary information, in particular for prevention of fraud or evasion of taxes,” she said.
“Improving on our existing treaties and entering new ones is a must in our constantly changing global financial landscape. Examining and reexamining these aspects of bilateral relations will strengthen our economy and financial institutions,” she concluded.***