In a significant shift in economic relations, Switzerland has announced it will withdraw India’s ‘Most Favoured Nation’ (MFN) status under their Double Taxation Avoidance Agreement (DTAA), effective January 1, 2025. This decision is expected to have far-reaching implications for Indian businesses operating in Switzerland, particularly in sectors like technology, finance, and industry. Higher Dividend Taxes...
Category: Bussiness
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Repatriation of profit from Swiss to become a costlier affair
The Supreme Court judgment on ‘double taxation avoidance agreements’ in the Nestle case, coupled with the decision of the Swiss finance department to withdraw the most favoured nation status for India is expected to have a wider ramification on past investments made by Indian companies in Switzerland. Prashant Bhojwani, Partner, Corporate Tax, Tax & Regulatory...
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Switzerland withdraws India’s ‘most favoured nation’ status: 2 key impacts
Switzerland has withdrawn the most Favoured Nation (MFN) status for India under their Double Taxation Avoidance Agreement (DTAA), effective January 2025. This move stems from a 2023 Indian Supreme Court ruling involving Nestlé, a Swiss multinational, which clarified that MFN benefits under the treaty are not automatically triggered without proper notification by Indian authorities. Let...
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Mint Explainer: Why Switzerland withdrew MFN status in its tax treaty with India
Beginning 1 January 2025, dividend payments from Swiss entities to Indian investors will be taxed at 10%, double the current 5%. Switzerland has attributed this change to a 2023 Indian Supreme Court ruling in a case involving Nestle SA and others, which clarified that MFN clause benefits require explicit notification by the Indian government under...
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Switzerland to Revoke MFN Tax Status for India from 2025
Switzerland has announced that it will revoke the Most Favoured Nation (MFN) status in taxation to India from 1 January 2025. In a statement, Switzerland cited the Supreme Court’s judgement in the Nestle case in 2023 as the main reason for revoking the MFN status to India under the Double Taxation Avoidance Agreement (DTAA). The...
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Tax hit to top Indian firms from new Swiss rule – Industry News
The tax liability of several Indian companies, which have operations in Switzerland, including bellwether IT and pharma firms, may rise with the central European country announcing a decision to increase the withholding tax on dividends their Swiss arms pay to Indian parents under the ‘source rule’, from 5% to 10%, effective January 2025. Switzerland cited...
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MFN clause freeze won’t hit investments in India: Switzerland
Randhir Jaiswal, Official Spokesperson of the Ministry of External Affairs. File | Photo Credit: PTI Switzerland’s decision to suspend the Most Favoured Nation (MFN) treatment for India under the two countries’ 30-years old double-taxation avoidance agreement (DTAA) from January 1 will neither affect the free trade deal recently reached between the European Free Trade Association...
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Switzerland Withdraws MFN Status For India: What’s Next For Indian Businesses
Switzerland Withdraws MFN Status For India: What’s Next For Indian Businesses (Image Source: Pixabay) New Delhi: Switzerland has decided to withdraw the Most Favoured Nation (MFN) status granted to India, leading to higher taxes for Indian businesses operating in the country. Starting January 1, 2025, Indian companies will face a 10 per cent withholding tax...
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Economy News Today Live Updates on December 14, 2024: Switzerland India trade tax MFN: What does Switzerland’s halt of most favoured nation for India mean? EXPLAINED
Economy News Today Live Updates on December 14, 2024: Stay informed with the latest information and news about the Indian economy, world economy, global indicators, government policy for the economy, and real-time insights on dynamic GDP growth with our live coverage. LiveMint is the one-stop hub for those looking for the latest economic news and...
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Switzerland India trade tax MFN: What does Switzerland’s halt of most favoured nation for India mean? EXPLAINED | Mint
Following an adverse Supreme Court ruling against Nestle, Switzerland revoked the Most Favoured Nation (MFN) status granted to India. This action will have adverse tax ramifications for Indian businesses doing business in the European country. Switzerland said in a statement that the MFN clause in the protocol to the agreement between the Swiss Confederation and...
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Switzerland Revokes MFN Status In Tax Treaty With India Following Nestle Verdict
Switzerland has taken unilateral action following the Supreme Court of India’s ruling in the Nestle case, revoking India’s “Most Favoured Nation” (MFN) status under the Double Taxation Avoidance Agreement (DTAA). This move marks a significant shift in bilateral treaty dynamics, which will substantially impact Indian companies operating in Switzerland and Swiss investments in India. In...
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Switzerland cancels ‘most favoured nation’ status to India over Nestle ruling
The Swiss government has suspended the most favoured nation status (MFN) clause in the Double Taxation Avoidance Agreement (DTAA) between India and Switzerland, potentially impacting Swiss investments in India and leading to higher taxes on Indian companies operating in the European nation. According to a December 11 statement by the Swiss finance department, the move...