PH, Italy ink amendments in Double Taxation Agreement
MANILA – The Philippines and Italy finalized on Monday the protocol amending the convention between the two countries for the Avoidance of Double Taxation with respect to Taxes in Income and Prevention of Fiscal Evasion originally signed on December 5, 1980.
The signing of the amended Double Taxation Agreement (DTA), led by Finance Secretary Cesar Purisima and Italian Ambassador to the Philippines Massimo Roscigno, was described by Purisima as a “positive step towards competitiveness and fairness in taxation between our countries.”
The signing 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 hope that with this move, 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," Purisima said.
The signing of the agreement amended in particular 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 (OECD) and the United Nations (UN), incorporating changes in the tax system of Italy.
The amendments will need to be subsequently ratified and approved by the respective authorities of both governments.