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...
Tag: Double Taxation Avoidance Agreement
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MFN Clause Suspension By Switzerland: India Needs Strategic Approach For International Taxation Treaties, Says GTRI – News18
Last Updated:December 14, 2024, 12:37 IST The Swiss government has suspended the most favoured nation (MFN) status clause in the Double Taxation Avoidance Agreement between India and Switzerland, potentially impacting Swiss investments in India and leading to higher taxes on Indian companies operating in the European nation. The suspension of the MFN clause is a...
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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...
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India’s DTAA with Switzerland may require renegotiation: MEA
India on Friday said its double taxation treaty with Switzerland may require renegotiation in view of its trade pact with the member states of the European Free Trade Association (EFTA). The remarks by the spokesperson of the Ministry of External Affairs (MEA) came after the Swiss government suspended the most favoured nation status (MFN) clause...
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Bad news for India as Switzerland revokes this special status to India due to…
Home Business Bad news for India as Switzerland revokes this special status to India due to… According to the statement, in 2021, the Delhi High Court in the Nestle case upheld the applicability of the residual tax rates after taking into account the MFN clause in the double taxation avoidance treaty. The Switzerland government has...
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MFN clause suspension by Switzerland: India needs strategic approach for int’l taxation treaties, says GTRI
New Delhi: The suspension of the MFN (most favoured nation) clause by Switzerland underscores the need for India to adopt a more consistent and strategic approach to international taxation treaties, think tank GTRI said on Friday. This suspension introduces tax challenges for Indian firms operating in Switzerland, particularly in sectors like financial services, pharmaceuticals, and...
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Switzerland suspends MFN clause with India under tax treaty, cites SC ruling in Nestle
Switzerland has announced the suspension of the most favoured nation (MFN) status granted to India following an adverse court ruling against Nestle. This means increased tax liabilities for Indian entities operating in Switzerland. From January 1, 2025, Indian companies will be subject to a higher withholding tax on income generated in Switzerland. The decision follows a ruling...