Philippine-Germany Tax Treaty Up

 www.bethelfinance.com
The Philippines and Germany concluded the final round of negotiations on the revision of the agreement for the avoidance of double taxation with respect to taxes on income and capital.
The Department of Foreign Affairs (DFA) said the new tax treaty have the scope to protect against the risk of double taxation where the same income is taxable in the Philippines and Germany.
It is also aimed at preventing fiscal evasion and fostering cooperation between Philippine and other tax authorities by empowering their respective tax laws. An effective international tax treaty is expected to facilitate trade and investments.
“This new tax treaty will provide German investors with certainty and guarantees in the area of taxation,” Philippine Ambassador to Germany Maria Cleofe R. Natividad declared . “It will bolster our economic diplomacy efforts here in Germany.”
Bureau of Internal Revenue Commisioner Kim S. Jacinto-Henares led the  Philippine delegation during the negotiations. The other persons included in the delegation were Undersecretary Carlo Carag of the Department of Finance, Assistant BIR Commissioner Marissa Cabreros, Atty. Charadine Bandon of the BIR International Tax Division, and Director Mersole Mellejor of the Department of Foreign Affairs.
Ambassador Natividad represented the Philippine Embassy during the negotiations. She was joined by Third Secretary Azela Arumpac and Finance Attache Generosa Balocating.
The German delegation was headed by Dr. Wolfgang Lasars of the Federal Ministry of Finance. He was assisted by Ms. Simone Richter, a senior tax expert from the same Ministry, and Mr. Heinz-Josef Johansmeier, a legal expert from the Federal Foreign Office (FFO), Mr. Sven Green (FFO) and Ms. Nadine Lichtblau of the Federal Ministry of Economy and Technology.
All outstanding problems were resolved during the last round of negotiations, with both parties agreeing on the adoption of new standards in the tax treaty.
The Philippine and German delegations agreed to ensure early completion of their respective domestic requirements for the ratification of the new treaty. The new agreement is expected to be signed in Germany , first period of the next year.
Germany is an important economic partner of the Philippines. From January to November 2011, total trade was valued at $2.9 billion, with Germany as the biggest export market for Philippine goods in Europe.
German companies operating in the Philippines include Continental Temic, Siemens, Lufthansa Technik, Daimler Benz, BMW, Bayer, and Bosch.