The Philippines and Japan governments have agreed in principle to revise their bilateral tax treaty for the first time in nearly 20 years,ย an important step towards strengthening bilateral tax frameworks between the two countries.
This developed following the conclusion of the First Round of Renegotiation of the โConvention Between Japan and the Republic of the Philippines for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Incomeโ.
Minister for Economic Affairs Yokota Naobumi from Japanโs Ministry of Finance (MOF) led the Japanese delegation. The Philippine delegation was headed by the Department of Finance (DOF) Assistant Secretaries Dakila Elteen M. Napao and Euvimil Nina R. Asuncion, together with the Bureau of Internal Revenue (BIR) Deputy Commissioner Larry M. Barcelo. Both delegations engaged in substantive and productive discussions on key provisions of the treaty from January 27-30, 2026.
Both parties reached a substantive agreement for the first time in nearly 20 years to revise the tax treaty by replacing the old tax convention, and reaffirming mutual trust and their long-standing partnership.
The new tax convention is seen to promote a more reliable and stable investment environment, supports sustainable economic growth, and facilitates cross-border trade and investment while ensuring fair taxation for Japanese and Filipino businesses and individuals alike.
This milestone is especially meaningful as the Philippines and Japan are currently celebrating the 70th Anniversary of Friendship, underscoring the joint dedication to building a fair, transparent, and future-ready tax environment for both nations.
