Philippines-Germany Exchange Instruments of Ratification on the Agreement for the Avoidance of Double Taxation

The Philippines and Germany exchanged the original Instruments of Ratification of the renegotiated Philippines – Germany Agreement on the Avoidance of Double Taxation today, paving the way for the potential entry of more German investments in the country. Department of Foreign Affairs (DFA) Assistant Secretary for European Affairs Maria Cleofe Natividad represented the Philippines in the ceremony, with German Ambassador Thomas Ossowski heading the German side.

The two countries renegotiated the Agreement with a view to strengthening bilateral trade and investments, deepening economic relations and cooperation in the field of taxation, and in order to better enforce domestic laws, reduce tax evasion and promote technology transfer.

Finance Secretary Cesar V. Purisima signed the renegotiated Agreement on behalf of the Philippine Government on 09 September 2013 in Berlin, Germany.

The entry into force of the renegotiated Agreement terminates the previous Agreement on the Avoidance of Double Taxation concluded by the Philippines and Germany in 1983.

Germany is an important and strategic partner of the Philippines and remains to be the country’s top trading partner in Europe. It ranks as the 9th major trading partner of the Philippines worldwide. Bilateral trade between the two countries amounted to USD$5.346 billion in 2014.

Source: www.dfa.gov.ph