Japan and the Philippines have agreed in principle to replace their existing tax treaty, marking the first major update to the agreement in nearly 20 years.
The agreement followed the first round of renegotiation talks held from 27 to 30 January 2026. Japan’s delegation was led by Minister for Economic Affairs Yokota Naobumi and officials from the Ministry of Finance. The Philippine side was headed by Department of Finance Assistant Secretaries Dakila Elteen M. Napao and Euvimil Nina R. Asuncion, with participation from Bureau of Internal Revenue Deputy Commissioner Larry M. Barcelo.
Both sides reported productive discussions on key treaty provisions aimed at avoiding double taxation and preventing tax evasion. The updated convention is expected to modernize tax rules between the two countries and align them with current economic realities.
The renegotiated treaty is intended to provide greater tax certainty for businesses and individuals, support cross-border trade and investment, and create a more stable and predictable investment environment. It also reflects a shared commitment to fair taxation while encouraging sustainable economic growth.
The breakthrough comes as Japan and the Philippines celebrate the 70th anniversary of diplomatic relations, highlighting the strength of their long-standing partnership and their joint effort to build a more transparent and future-ready tax framework.
