The Department of Finance (DOF) led the formal negotiation of the Philippines-Japan Double Taxation Convention (DTC) held from January 27 to 30, 2026 to ensure economic relations remain modernized and responsive to the evolving global business climate.
“As one of the Philippines’ most vital and enduring economic partners, the negotiation with Japan underscores our countries’ mutual commitment to strengthening partnership by providing a clear, modern, and equitable tax treaty framework,” Finance Secretary Frederick D. Go said.
The DTC, finalized after one round of formal negotiations, covers income taxation for citizens and residents of both the Philippines and Japan.
It defines how each nation will levy taxes and apply credits for taxes already paid, ensuring compliance with the tax laws of both countries.
The negotiated treaty is expected to produce a balanced framework that supports cross-border economic activity and safeguards the integrity of both nations’ tax systems.
Revenue Operations Group (ROG) Undersecretary Rolando Ligon highlighted that the evolving tax landscape—marked by the digitalization of the economy and capital mobility—requires a careful and forward-looking review of the current agreement.
“Through these renegotiations, we seek to align our Convention with contemporary international standards, promote certainty and fairness for taxpayers, and reinforce our shared commitment to combating tax evasion and avoidance,” he said.
The renegotiation is timely as the Philippines marks its 70th anniversary of diplomatic relations with Japan this year.
Embassy of Japan in the Philippines Minister for Economic Affairs Yokota Naobumi expressed high expectations for the amendment’s potential to stimulate further Japanese investment in the Philippines.
“I sincerely hope that the amendment to the tax treaty will be concluded at an early stage and that this year will truly become one of significant progress in our bilateral relationship,” he said.
Both sides are committed to aligning the Convention with current international standards, while ensuring fairness and preventing tax evasion.
The Philippine negotiating team was composed of DOF ROG Assistant Secretaries Dakila Elteen M. Napao and Euvimil Nina R. Asuncion, and Bureau of Internal Revenue (BIR) Deputy Commissioner for Legal Larry M. Barcelo and International Tax Affairs Division Chief Robbie M. Bañaga.
The Japanese delegation included Economic Minister Naobumi, Embassy of Japan Second Secretary Narita Akihiro, with Ministry of Japan Tax Bureau Director for Tax Treaties and International Affairs Hisanaga Takuma, Deputy Director Nishijima Hiromitsu, Deputy Director Tanaka Kyohei, and Section Chief Kawashima Ayaka.
After negotiations, the DTC will be approved in line with each country’s legal processes and will take effect 30 days after the exchange of diplomatic notes confirming approval.
