News & Media 17th Dec 2024

Why Switzerland withdrew MFN status in its tax treaty with India

Authors

Rahul CharkhaPartner | Pune

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Switzerland has suspended the Most-Favoured-Nation (MFN) clause in its Double Taxation Avoidance Agreement (DTAA) with India, significantly altering the tax treatment of cross-border dividends. Beginning January 01, 2025, dividend payments from Swiss entities to Indian investors will be taxed at 10%, double the current 5%.

The recent Livemint Lounge’s explainer on “Why Switzerland withdrew MFN status in its tax treaty with India” examines the Nestle case, the Supreme Court’s ruling, and its wider impact on trade relations with insights from our Partner Rahul Charkha.

Tune into the story here

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