Hey, like this? Why not share it with a buddy?

Switzerland has suspended the Most Favoured Nation (MFN) clause in its Double Taxation Avoidance Agreement (DTAA) with India. This move is expected to impact Swiss investments in India and increase tax burdens on Indian companies operating in Switzerland.
The Swiss finance department, in its December 11 statement, cited a 2023 Indian Supreme Court ruling as the basis for this decision. The ruling clarified that the MFN clause does not apply automatically when a country joins the OECD, provided India’s tax treaty with that nation predates its OECD membership.
India’s tax treaties with Colombia and Lithuania offered lower tax rates on certain income types compared to OECD countries. After these nations joined the OECD, Switzerland interpreted that the MFN clause allowed a reduced 5% tax rate on dividends in its treaty with India. However, following the MFN suspension, dividends earned by Indian entities in Switzerland will be taxed at 10% from January 1, 2025.
This suspension signifies a shift in bilateral tax treaty dynamics, with experts highlighting increased complexities for Indian companies navigating international tax laws.
Source : Switzerland suspends most favoured nation status to India – The Tribune
Related Posts
SEARCH SME E-News
RECENT POST
- An Exclusive Interivew with Bhavesh Jain, MD & CEO, TransUnion CIBIL on Finance for MSME Sector
- Canada raises proof of funds requirement for foreigners applying for permanent residency
- Fin. Min. asks PSBs to evaluate Board performance
- India stands to lose $5 billion of exports to Vietnam in no US trade deal scenario
- Executive Directors can be included in CIBIL list if the Company defaults loans: Madras High Court
Categories
- Achievements
- Banking & Finance
- Branding & Marketing
- Business Ethics & Culture
- Business talk
- Business Tycoons
- Capital Market
- Corporate Story
- Davos
- Economy
- Emerging Market
- Entrepreneurial Leadership Dialogue
- events
- Exports
- Grievances
- Impact on Business
- Import
- India Growth Story
- Industry
- Innovation and Invention
- Innovative Ideas
- International Affairs
- International Trade
- jobs career
- Manufacturing
- Meeting
- MSME
- Others
- Packaging
- Pharma
- Policies & Schemes
- Regulatory Change
- Skill Development
- SME Talks
- Start-up
- Swot Analysis
- Tax
- Technology & Research
- Travel
- Uncategorized
- Viksit Bharat 2047- Strategies, Contribution, Initiatives and Efforts
- Women Entrepreneurs
- World Economic Forum