Cambodia and the Philippines have recently finalized the Double Tax Agreement (“DTA”) between the two nations, aimed at improving trade and simplifying investment mechanisms.

Negotiations on the Cambodia-Philippines DTA began in 2018, with the goal of eliminating double taxation issues and promoting cross-border trade and investment. This agreement represents a significant step forward in the economic relationship between the two countries.

The DTA aims to reduce the burden of double taxation on individuals and businesses operating in these countries. This, in turn, eliminates barriers to trade and investment and encourages cross-border economic activities.

The final draft of the DTA encompasses the taxation of income earned by citizens and residents of both Cambodia and the Philippines. It also outlines how each country’s tax administration will impose and credit taxes paid in accordance with the tax rules in both countries.

Cambodia expects to sign the DTA in October 2024, making the Philippines the 12th country with which Cambodia has concluded a DTA.

We will keep you informed once this new DTA is signed and becomes effective. DFDL’s tax team is ready to answer any questions you may have on this and other tax issues of concern.

Tax services required to be undertaken by a licensed tax agent in Cambodia are provided by Mekong Tax Services Co., Ltd, a member of DFDL and licensed as a Cambodian tax agent under license number – TA201701018.

Contacts:

Clint O'Connell, Partner, Managing Director I Head of Cambodia Tax and Accounting Practice