PH, Cambodia ink pacts on taxation, agri, tourism, culture

(From left): Cambodian Prime Minister Samdech Moha Borvor Thipadei Hun Manet and President Ferdinand Marcos Jr. Photo from the Presidential Communications Office

MANILA, Philippines — President Ferdinand Marcos Jr. and his Cambodian counterpart on Tuesday signed a pact in a bid to remove double taxation on income tax, along with other key agreements on sectors of agriculture and tourism.

These developments were made as Cambodian Prime Minister Samdech Moha Borvor Thipadei Hun Manet visited Marcos at Malacañang Palace to highlight his two-day stay in the country.

“On trade and investment, we welcome our formal cooperation on the avoidance of double taxation,” Marcos said in a joint press conference.

The double taxation agreement (DTA) was signed by Department of Finance (DOF) chief Ralph Recto and his Cambodian counterpart, Deputy Prime Minister and Foreign Affairs and International Cooperation Minister Prak Sokhonn.

The DTA was supposed to be signed in October 2024, but DOF said it was postponed upon the request of Phnom Penh officials.

Negotiations on the DTA began in 2018 in Manila, and was followed through in 2019 in Siem Reap, Cambodia, the DOF said.

The DOF previously said the country is planning to renegotiate its DTAs with Indonesia, Malaysia and Singapore.

Marcos then said moves like the DTA “will see more Filipinos investing in Cambodia, and more Cambodians investing in the Philippines.”

Currently, over 7,000 Filipinos reside and work in the Southeast Asian country, and Hun Manet said they play a crucial role in the socio-economic development of his country.

“We remain committed to ensuring we maintain a supportive environment to our Filipino friends,” he said.

Aside from the pact against double taxation, Manila and Phnom Penh also signed seven more memorandum of agreements (MOU).

Hun Manet said: “Mr. Marcos and I just concluded productive discussions and witnessed the exchange of eight arrangements and MOUs serving as a concrete arrangement to increase our interactions.”

Both countries have also signed MOUs on agriculture sector and tourism.

Agriculture Secretary Francisco Tiu Laurel and Cambodian counterpart Minister Dith Tina signed the MOU on Agricultural and Agribusiness Cooperation between both nations.

Hun Manet said: “We are identifying new opportunities to boost trade and investment flows in agriculture.”

“We also see Cambodia as an important partner in ensuring food security,” Marcos said.

“I am pleased that we have come to an agreement to pursue stronger collaboration in agriculture and in agribusiness.”

Marcos enjoined Filipinos and Cambodians in the agricultural sector to “actively participate in various programs under this agreement.”

Hun Manet also said Phnom Penh is ready to become a supplier of rice to Manila.

“Cambodia stands ready to contribute to the Philippine food security through rice supply as well as many other food products,” he said.

Manila also signed key MOUs on tourism and cultural affairs with Phnom Penh, a nation renowned for its rich cultural heritage and monuments like the Angkor Wat.

Tourism Secretary Ma. Esperanza Christina Garcia Frasco  and Cambodian counterpart Minister Hout Hak signed an MOU  on tourism cooperation between two nations for the period 2024-2028.

Likewise, National Commission for Culture and the Arts Chairperson Victorino Mapa Manalo and Cambodian counterpart Minister Phoeurng Sackona renewed the MOU on Prevention of Looting and Illicit Trafficking of Cultural Properties.

“We have renewed our agreement on the prevention of looting and trafficking of cultural properties, which reaffirms our commitment to safeguard our highly-regarded cultural items, to facilitate expert exchanges, and to promote collaboration that can enable future generations to appreciate the remarkable representation of our history and our identity,” Marcos said.