Switzerland halts MFN status for India, MEA signals renegotiation of tax treaty. What it means for Indian firms

The Swiss authorities, in an official statement dated December 11, declared that the MFN clause under the DTAA will cease to be effective from January 1, 2025. This action follows the Indian Supreme Court's interpretation that the MFN clause does not automatically trigger without specific notification under the Income Tax Act.

BERN: Switzerland has suspended the Most Favoured Nation (MFN) status under the Double Taxation Avoidance Agreement (DTAA) with India, a move that could result in higher taxes for Indian companies operating in Switzerland and potentially affect Swiss investments in India.

Switzerland suspends MFN treatment for India under DTAA, but it won't impact EFTA trade deal or Swiss investments.

Explained: What is the most favoured nation clause and why did Switzerland suspended it for India after the Nestle's 2023 Supreme Court ruling

Switzerland cited a 2023 ruling by Indian Supreme Court in a case relating to Vevey-headquartered Nestle for its decision to withdraw the MFN status

Switzerland has scrapped the MFN clause with India, raising tax liabilities for Indian firms in sectors like IT, pharmaceuticals and financial services

Switzerland has announced it will suspend the Most-Favoured Nation (MFN) status granted to India under the double tax agreement treaty, effective January 1, 2025. The move is set to have far-reaching

Switzerland has announced its decision to suspend the Most Favoured Nation (MFN) clause in its Double Tax Avoidance Agreement (DTAA) with India, effective 1 January 2025. The move is expected to increase tax liabilities on dividend income for Indian entities operating in Switzerland.

Switzerland will suspend a key tax provision with India from 2025, impacting dividend income for Indian companies operating there. This follows an Indian Supreme Court ruling on the most favoured nation clause,