The governments of Japan and the Philippines have recently agreed in principle on the new Tax Convention replacing the existing one.
Japanese Minister for Economic Affairs Yokota Naobumi, together with the Ministry of Finance (MOF) officials, participated in the First Round of Renegotiation of the “Convention Between Japan and the Republic of the Philippines for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.”
The Philippine delegation was led by Department of Finance (DOF) Assistant Secretaries Dakila Elteen M. Napao and Euvimil Nina R. Asuncion, together with the Bureau of Internal Revenue (BIR) Deputy Commissioner Larry M. Barcelo.
The renegotiation is recognized as an important step in strengthening the bilateral tax frameworks of the Philippines and Japan. It promotes a more reliable and stable investment environment, supports sustainable economic growth, and facilitates cross-border trade and investment while ensuring fair taxation for Japanese and Filipino businesses and individuals alike.
Through these discussions, the two parties reached a substantive agreement for the first time in nearly 20 years to revise the tax treaty, reaffirming mutual trust and their long-standing partnership.
This milestone is seen especially meaningful as the Philippines and Japan are currently celebrating the 70th Anniversary of Friendship, underscoring the joint dedication to building a fair, transparent, and future-ready tax environment for both nations.
