The Philippines and the Hong Kong Special Administrative Region (HKSAR) have successfully completed the first round of negotiations for a tax treaty that will pave the way for stronger economic ties and increased investments between the two nations.
The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) led the negotiations for the Comprehensive Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (CDTA) from May 21 to 23, 2025.
The CDTA aims to eliminate double taxation on income, prevent fiscal evasion, promote trade and investment, enhance mechanisms for information exchange, reduce tax barriers for businesses and individuals, and foster deeper economic collaboration.
This supports President Ferdinand R. Marcos, Jr.’s push to create a tax system that is fair, transparent, and investor-friendly—laying the groundwork for stronger business confidence and sustained growth.
“I commend our Revenue Operations Group and the BIR for leading this fruitful exchange. This not only strengthens our bilateral relations, but it is a concrete step towards deepening regional integration and greater investor confidence in the Philippines. This means more trade, more jobs, and more wins for every Filipino,” Finance Secretary Ralph G. Recto said.
The three-day negotiation resulted in both sides reaching a consensus on the majority of the key provisions of the draft agreement after a careful article-by-article discussion.
Inland Revenue Commissioner Sze-wai Benjamin Chan underscored the strategic importance of the CDTA, emphasizing that negotiations would involve thorough and in-depth discussions to reach mutually beneficial outcomes.
“I thank the Philippines for accepting Hong Kong SAR’s invitation to conduct the first round of negotiations. I hope that we would have a very fruitful discussion and this round of negotiations can enable us to reach a consensus on the text of the Agreement,” he said.
The Philippine delegation consisted of BIR Commissioner Romeo D. Lumagui, Jr., DOF Assistant Secretary Dakila Elteen M. Napao, DOF Director IV Euvimil Nina R. Asuncion, BIR OIC-Deputy Commissioner for Legal Group Larry M. Barcelo, Regional Director Dante E. Tan, and International Tax Affairs Division Chief Robbie M. Bañaga.
Representatives from the Department of Foreign Affairs (DFA) and the Philippine Consulate General in Hong Kong, led by Consul General Romulo Victor M. Israel, Jr., participated as observers during the meetings.
The second round of negotiations is scheduled to take place in October this year, with both sides committed to finalizing the CDTA in a timely manner.
