Signing of the Protocol Amending the Convention between the Government of Japan and the Government of the Republic of the Philippines for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

December 9, 2006

On December 9 (Sat) in Manila, Mr. Ryuichiro Yamazaki, Japanese Ambassador to the Philippines, and Mr. Margarito B. Teves, Secretary of Finance of the Republic of the Philippines, signed the Protocol Amending the Convention between the Government of Japan and the Government of the Republic of the Philippines for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income in the presence of Mr. Shinzo Abe, Prime Minister of Japan, and President Gloria Macapagal-Arroyo of the Philippines.
Reflecting the close economic relations between Japan and the Philippines, this Protocol, which partially amends the current convention, reduces the withholding taxes imposed on dividends, interest and royalties, such as copyright and patents, paid between the two countries, with a view to positively promoting mutual investment between the two countries. The new Protocol also abolishes the tax sparing credit in the future with a 10-year applicable period. This amendment is expected to further strengthen the economic relations between the two countries through the positive promotion of mutual investment.
After the Protocol is approved in accordance with the legal procedures of each country, it will enter into force on the thirtieth day after the date of the exchange of diplomatic notes indicating such approval.

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