The Senate concurred in the ratification of two resolutions that would uphold and protect the rights and welfare of Filipino migrant workers in Brunei Darussalam and the Republic of Korea.
During a recent plenary session, the Senate unanimously approved Senate Resolution No. (SRN) 790, concurring in the ratification of the agreement between the Philippines and Brunei Darussalam for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and SRN 878, a resolution concurring in the ratification of the agreement on social security between the Philippines and the Republic of Korea.
The two resolutions were sponsored by Senator Imee Marcos, chairperson of the Committee on Foreign Relations.
SRN 790 shall apply to persons who are residents of one or both of the contracting states and to taxes on income imposed on behalf of a contracting state irrespective of the manner in which they are levied.
In the case of the Philippines, the Agreement shall apply to existing taxes on individuals, corporations, estates and trusts, withholding tax on income, and stock transaction, while for Brunei Darussalam, it shall apply to existing taxes on income imposed under its Income Tax Act and petroleum profits under its Income Tax (Petroleum) Act.
The agreement aims to:
(a) strengthen the Philippines’ commitment to the Association of Southeast Asian Nations (ASEAN) Forum on Taxation;
(b) mitigate the adverse effects of double taxation on the profits of business enterprises in cross-border transactions;
(c) enhance bilateral trade relations between the Philippines and Brunei Darussalam;
(d) generate more employment for Filipinos in Brunei Darussalam;
(e) encourage investors to 4 invest in both countries; and
(f) promote inbound transfer of technology and skills.
The agreement also seeks to deepen economic relations between the Philippines and Brunei Darussalam by enhancing cooperation on tax matters.
The agreement also seeks to deepen economic relations between the Philippines and Brunei Darussalam by enhancing cooperation on tax matters.
It also seeks to address the adverse effects of double taxation on the free flow of trade and investments and further strengthen enforcement of both countries’ domestic laws to reduce tax evasion.
SRN 878 aims to promote mutual cooperation between the two countries in the field of social security.
Meanwhile, SRN 878 aims to promote mutual cooperation between the two countries in the field of social security.
The agreement shall apply to the National Pension Act of Korea, and to the following legislations of the Philippines: Republic Act No. 11199, also known as the “Social Security Act of 2018”, as it relates to retirement, disability, and death benefits; Republic Act No. 8291, also known as the “Government Service Insurance Act of 1997” as it relates to retirement, disability, death, and survivorship; and Republic Act 12 No. 7699, also known as the “Portability Law”, as it relates to totalizing creditable period of contributions under the Acts.
The agreement provides for equality of treatment which entitles a covered person, including the said person’s dependents and survivors, to social security benefits under the same conditions as nationals of the other State. It provides for export of benefits enabling covered persons to continue receiving their benefits wherever they decide to reside, totalization of insurance periods, and mutual administrative assistance.
