Excellency,
With reference to Paragraph 2 (b) of Article 4, of the Agreement between the Republic of the Philippines and the Kingdom of the Netherlands for the Promotion and Protection of Investments, signed today, it is the understanding of the Philippine Government that:
- 1.tax matters are generally covered by an agreement for the avoidance of double taxation and the prevention of fiscal evasion, hence, are not the proper subject matter in an investment agreement. Outside of double taxation agreements entered into by the Contracting Parties, the rule of taxation is uniform and equitable;
- 2.fiscal incentive schemes of the Philippines, granted under various laws enacted or to be enacted to promote economic development, do not discriminate against any Netherlands investor vis-à-vis any other foreign investor on the basis of nationality alone.
The Government of the Philippines requests confirmation of the above understanding.
Accept, Excellency, the assurance of my highest consideration.
(sd.) ARTURO M. TOLENTINO
Arturo M. Tolentino
Minister for Foreign Affairs
His Excellency
Ambassador Wieger Hellema
Kingdom of the Netherlands
