The Philippines and the Hong Kong Special Administrative Region (HKSAR) completed their initial 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 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 Recto said.
