The Philippines is negotiating double taxation agreements with 10 countries and advancing Pillar Two legislation to attract foreign investors and eliminate tax barriers to doing business.
The Philippines is stepping up efforts to attract foreign investment by expanding its network of double taxation agreements and advancing legislation to implement the OECD’s Pillar Two global minimum tax rules.
According to a report published by the Philippine News Agency on 17 June 2026, Finance Secretary Frederick Go announced that the Philippines is actively negotiating double taxation agreements (DTAs) with 10 countries to strengthen its appeal to foreign investors.
Speaking at a media briefing, Go outlined the government’s two-pronged strategy: finalising DTAs while advancing the multinational minimum tax bill.
Negotiations at various stages
The country is renegotiating existing agreements with Japan, Singapore, and Hong Kong, while simultaneously engaging with Liechtenstein, Cambodia, Lao, and Thailand. Malaysia, Luxembourg, and South Korea are in earlier phases, having just begun the authority-to-negotiate process. Japan’s newly renegotiated Convention for the Avoidance of Double Taxation, signed during President Ferdinand R. Marcos Jr.’s visit in May 2026, is expected to take effect first.
These agreements are crucial for reducing double taxation burdens on investors and cutting business costs across jurisdictions.
Pillar Two tax framework on the horizon
The Department of Finance is pushing Congress to pass the Qualified Domestic Minimum Top-up Tax (QDMTT) bill, which will implement the Organisation for Economic Co-operation and Development’s Pillar Two Global Minimum Tax rules. The measure will require multinational enterprise groups with annual consolidated revenues of EUR 750 million or more to maintain a 15% effective tax rate on Philippine-sourced profits.
The Philippines hosts over 1,100 multinational enterprises, with approximately 531 falling within the global minimum tax scope. Go expressed confidence the bill would be enacted this year, with the Philippines joining the programme in 2027 and commencing tax collections in 2028.
