Philippines, Germany enforce renegotiated pact on avoidance of double taxation

The Philippines and Germany on Friday exchanged the original instruments of ratification of the renegotiated agreement on the avoidance of double taxation, paving the way for the potential entry of more German investments in the Southeast Asian country.

The two countries renegotiated the agreement with a view to strengthening bilateral trade and investments, deepening economic relations and cooperation in the field of taxation, and in order to better enforce domestic laws, reduce tax evasion and promote technology transfer.

The entry into force of the renegotiated agreement terminates the previous Agreement on the Avoidance of Double Taxation concluded by the Philippines and Germany in 1983.

The Philippine Department of Foreign Affairs said Germany is an important and strategic partner of the Philippines and remains to be the country's top trading partner in Europe.

Germany also ranks the ninth major trading partner of the Philippines worldwide.

Bilateral trade between the two countries amounted to 5.346 billion U.S. dollars in 2014. Enditem