Switzerland has withdrawn the 'most favoured nation' status from India under the Double Taxation Avoidance Agreement, following a Supreme Court ruling that imposed a higher tax rate on Nestle. This move raises concerns about the credibility of India's commitments to foreign investors, especially as the Trade and Economic Partnership Agreement with EFTA is set for ratification. Indian officials suggest that the TEPA may take precedence over the DTAA, indicating potential renegotiations ahead.
Switzerland has revoked India's Most Favored Nation (MFN) status following an Indian Supreme Court ruling related to Nestle, leading to a higher withholding tax of 10% on dividends for Indian companies starting January 1, 2025. This decision marks a significant shift in the bilateral treaty dynamics and could impact Indian firms in Switzerland and Swiss investments in India. India plans to renegotiate the Double Taxation Avoidance Agreement with Switzerland in light of this development.
Switzerland has suspended the 'Most Favoured Nation' status in its tax treaty with India, imposing a 10% tax on dividends from Indian entities starting January 1. This decision follows a Supreme Court ruling regarding the applicability of the MFN clause, particularly in relation to the Nestlé case, and may lead to renegotiations of the existing tax treaty amid India's recent trade pact with the European Free Trade Association.
Switzerland has suspended the most favoured nation (MFN) status for India, resulting in a 10% tax on dividends from Indian entities starting January 1. This decision follows a Supreme Court ruling that clarified the MFN clause's applicability concerning OECD membership. India's Ministry of External Affairs indicated that the double taxation treaty with Switzerland may need renegotiation due to India's recent trade pact with the European Free Trade Association, which aims to attract $100 billion in investments over the next 15 years.
Switzerland has suspended the most favoured nation (MFN) status for India under their tax treaty, effective January 1, 2025, following a Supreme Court ruling that affects the enforcement of the Double Taxation Avoidance Agreement (DTAA). This change will result in higher withholding taxes for Indian companies operating in Switzerland, particularly impacting firms like Nestle. The Swiss authorities cited a lack of reciprocity in tax treatment as the reason for this decision, which may prompt other countries to adopt similar measures.
India has responded to the recent charges of bribery and fraud against industrialist Gautam Adani and others, stating that it is a legal matter involving private firms and the US Department of Justice. Ministry of External Affairs spokesperson Randhir Jaiswal emphasized that the Indian government was not informed in advance and expressed confidence that established legal procedures would be followed.
The Indian Ministry of External Affairs (MEA) is in discussions with US authorities following sanctions imposed on 15 Indian entities for allegedly aiding Russia's military-industrial base. MEA spokesperson Randhir Jaiswal emphasized India's strong legal framework on strategic trade and its commitment to non-proliferation, while also working to inform Indian companies about new export control measures. The US has sanctioned a total of 275 individuals and entities, including those from China, Switzerland, Thailand, and Turkiye, for supplying critical technology to Russia.
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