The Philippines and Japan have updated their decades-old tax treaty to provide clearer and more predictable rules on cross-border income taxation, benefiting over 245,000 overseas Filipino workers in Japan.
Signed during President Marcos Jr.’s state visit to Tokyo, the renegotiated double taxation convention replaces the 1980 framework and aims to eliminate risks of double taxation.
The treaty also streamlines tax treatment for businesses, lowers costs, and enhances predictability for investors and individual taxpayers, while introducing updated withholding tax provisions on dividends, interest, and royalties.
Finance Secretary Frederick Go said the agreement reflects the Philippines’ goal to create a competitive and investment-friendly environment, particularly in high-growth sectors like advanced manufacturing, infrastructure, and digital innovation.
Japan, a major source of foreign direct investment, is expected to deepen economic engagement with the Philippines under the modernized treaty, reinforcing the country’s commitment to a rules-based global tax system.
Source: PhilNews24 | May 30, 2026
