Nestle India announced on Thursday that the suspension of Switzerland’s MFN clause will not impact the company, despite the broader policy issues it represents between governments. The FMCG major clarified the matter is not specific to them. The suspension stems from a Supreme Court ruling stating the MFN clause under the DTAA cannot be...
Tag: India
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The Swiss confusion – Opinion News
Switzerland’s decision to suspend the Most Favoured Nation (MFN) treatment for India under the two countries’ 30-year-old double-taxation avoidance agreement (DTAA) from January 1 shows that as far as India is concerned, the more things change, the more they remain the same. Despite the rapid changes in the external environment, the difference in understanding or...
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Diplomatic agreement needed to resolve India-Switzerland MFN taxation stalemate, says expert – CNBC TV18
Switzerland has decided to suspend the ‘Most Favoured Nation’ (MFN) clause from its bilateral double tax avoidance agreement (DTAA) with India, effective January 1 next year. This change is anticipated to increase tax liabilities for Indian firms operating in Switzerland. Following the suspension, Switzerland will impose a 10% tax on dividends paid to Indian tax...
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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Switzerland has withdrawn the most Favoured Nation (MFN) status for India under their Double Taxation Avoidance Agreement (DTAA), effective January 2025.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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Switzerland suspends India’s ‘most favoured nation’ status after SC’s Nestle ruling
Switzerland has unilaterally decided to suspend the most favoured nation (MFN) clause in its Double Taxation Avoidance Agreement (DTAA) with India. The move comes after the Supreme Court of India’s ruling in the Nestle case. The move is expected to have a significant impact on the operations of Indian companies in Switzerland as well as...
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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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Switzerland suspends ‘most favoured nation’ status to India, cites SC’s Nestle case ruling
Dec 14, 2024 08:18 AM IST This means that from January 1, dividends of Indian entities will be taxed at 10% in Switzerland. Dividends of Indian entities will be taxed at 10% in Switzerland from January 1 as the European nation has suspended the most favoured nation (MFN) clause in its Double Taxation Avoidance Agreement...
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India-Switzerland Tax Treaty Faces Renegotiation Amid Trade Developments | Business
The Indian government announced on Friday that it might need to renegotiate its double taxation treaty with Switzerland. This consideration comes in light of a recent trade agreement between India and the European Free Trade Association (EFTA) countries, which include Switzerland. The Ministry of External Affairs (MEA) spokesperson, Randhir Jaiswal, confirmed the likelihood of...
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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 scraps MFN status to India, dividend income to face higher tax
NEW DELHI: Switzerland has withdrawn the MFN status granted to India following an adverse court ruling against Nestle, a move that will result in adverse tax implications for Indian entities operating in the European nation. With this, from January 1, 2025, Indian companies will be subject to a higher withholding tax on income generated in...
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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...