The Philippines and Luxembourg are negotiating a new income tax treaty to enhance cooperation on trade, investment, creative industries, and technology, including measures to prevent double taxation and fiscal evasion.

The Philippines and Luxembourg, during the bilateral meeting on 18 February 2026, held talks regarding the establishment of a new income tax treaty

The discussions aimed at strengthening collaboration in trade and investment, creative industries, and technology. Officials discussed information and space technology, AI, labor mobility, and finalising a new agreement on the avoidance of double taxation, alongside fast-tracking the Philippine-EU FTA.

If an agreement is reached, the treaty will prevent double taxation and fiscal evasion between the two nations. It will have to be signed and ratified before it can enter into force.