Japan and the Philippines have agreed in principle on a new tax convention designed to reduce double taxation and create a more predictable environment for cross-border investment, signaling a major upgrade of their economic partnership after nearly 20 years.
From January 27 to 30, Minister for Economic Affairs Yokota Naobumi joined a delegation from Japan’s Ministry of Finance in the first round of renegotiations of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.
The Japanese side was led by Minister Yokota and MOF officials, while the Philippine delegation was headed by Department of Finance Assistant Secretaries Dakila Elteen M. Napao and Euvimil Nina R. Asuncion, together with Bureau of Internal Revenue Deputy Commissioner Larry M. Barcelo. Both sides reported substantive discussions on key treaty provisions.
Officials said the updated framework is expected to strengthen investor confidence, promote a more stable tax regime, and support trade and investment flows while ensuring fair taxation for Japanese and Filipino businesses and individuals.
The breakthrough marks the first substantive agreement to revise the treaty in almost two decades, reflecting deepening economic cooperation between Manila and Tokyo. It also comes as both countries celebrate the 70th anniversary of diplomatic relations, underscoring a shared commitment to a transparent and future-ready tax system.