Cambodia and the Philippines are close to signing a double taxation agreement (DTA) with Cambodia, which is expected to boost two-way trade and employment between the two countries.
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According to a report in the Philippine Daily Inquirer, Cambodia has agreed to the majority of the proposals submitted by the Philippine’s side, indicating that the signing of such an agreement is coming soon.
The proposals were submitted to the Cambodian side for their approval during a meeting between the two sides last month in Siem Reap. The latest meeting was a follow up from an earlier meeting held last year.
In June last year, the two sides held preliminary negotiations on the issue.
Such an agreement would be good news, especially for Filipinos working in Cambodia.
There are more than 5,000 Filipinos living and working in the Kingdom. Most of them are employed as managers, teachers, engineers, journalists, doctors, architects, accountants and other high-level positions.
Filipino companies with investments in Cambodia are also bound to benefit from such agreement. There are more than 50 Filipino companies with a presence in Cambodia, including San Miguel Corporation, Davies Paints, El Conde, Liwayway Marketing Corporation, United Laboratories, Royal Cargo Combined Logistics and Penshoppe.
The report states that a DTA will allow residents or citizens of both countries who are working in the other country to only pay taxes in their home country.
According to the Bureau of Internal Revenue, a nonresident in another country with which the Philippines has a double taxation treaty may be able to claim exemption or partial relief from the Philippines’ tax on certain types of income from Philippine sources.