Philippines and Germany to Sign New Tax Treaty in 2013

 

The Philippines and Germany are set to sign in 2013 a new tax agreement aimed at increasing German investments in the country.

In a meeting in Berlin last July 20, both countries have concluded the third and final round of negotiations on the revision of the accord, called "Agreement for the Avoidance of Double Taxation with respect to Taxes on Income and Capital, at Germany's Federal Ministry of Finance.

All outstanding issues were resolved during the last round of the five days meetings, with both parties agreeing on the adoption of new standards in the adoption in the tax treaty.

The new tax treaty is designed to protect against the risk of double taxation where the same income is taxable in the Philippines and in Germany.

the signing of the new agreement is expected to take place in Germany early 2013. Amid an unresolved airport terminal dispute between Manila and Berlin, Germany remained a strong significant partner of the Philippines  with a total bilateral trade valued US$ 2.9 billion in 2011.