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...
Tag: Most Favoured Nation
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Switzerland Suspends ‘Most Favoured Nation’ Status To India, But Why? Is It Due To SC’s Nestlé Case Ruling?
Switzerland withdraws the ‘Most Favoured Nation’ status from its tax treaty with India, following a Supreme Court ruling in the Nestle case. Dividend taxes are affected and this might lead to renegotiation as India recently signed a trade pact with the European Free Trade Association. Switzerland has now decided to withdraw the ‘Most Favoured Nation’...
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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...