The Philippines, through the Department of Finance (DOF), and the Lao People’s Democratic Republic (PDR), conducted the first round of negotiations for its Double Taxation Agreement (DTA).

In a statement on Tuesday, the DOF said the negotiation was held from Dec. 4 to 6, 2024 in Luang Prabang, Lao PDR.

The DTA aims to eliminate double taxation in terms of income taxes and prevent opportunities for non-taxation or reduced taxation through tax evasion or avoidance in cross-border transactions of Philippine and Lao PDR taxpayers.

“This initiative is a testament to the DOF’s strong commitment to safeguarding the integrity of our tax system by closing loopholes and preventing tax evasion. More importantly, it symbolizes our collective resolve to deepen economic cooperation and strengthen diplomatic ties between the Philippines and Lao PDR,” Finance Secretary Ralph Recto said.

“By working together to address cross-border taxation issues, we aim to promote greater trade, investment, and development opportunities,” Recto added.

The Philippines already forged DTAs with Brunei Darussalam, Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

It also recently concluded its DTA negotiations with Cambodia, and is scheduled to sign the same in February 2025.

“As you are aware, Lao PDR and the Philippines are both members of [the Association of Southeast Asian Nations], and we continuously support each other at regional and international levels,” Deputy Director of the Lao Tax Department Saymanolinh Sinbandhit said.

“Aligned with ASEAN Framework Agreements and our mutual dedication to expanding the DTA network, these negotiations represent our joint intention to strengthen cooperation within our community,” Sinbandhit added.

The Philippine delegation to the negotiation was composed of DOF Revenue Operations Group (ROG) Assistant Secretary Dakila Elteen Napao, ROG Director Euvimil Nina Asuncion, Bureau of Internal Revenue (BIR) OIC-Deputy Commissioner for Legal Larry Barcelo, and International Tax Affairs Division Chief Robbie Bañaga.

Meanwhile, the Lao PDR delegation included International Tax Cooperation Division Director Sivay Vilaihan, with members Tax Audit Division Director Vongsavanh Dethvongsa, Legal Division Acting Director Kongsy Namvavongmixay, VAT and Excise Tax Administrator Division Deputy Director Phaypany Choummaly, and International Tax Cooperation Division Deputy Director Athitnakone Phimmasone. (PNA)