Switzerland Suspends MFN Status for India
Switzerland has suspended the Most-Favoured-Nation (MFN) clause from its tax agreement with India, effective January 1, 2025. This decision follows a 2023 Indian Supreme Court ruling on the applicability of MFN clauses. The dividend tax rate for Indian companies in Switzerland will rise from 5% to 10%, increasing operational costs and affecting competitiveness. The move reflects Switzerland’s reassessment of tax reciprocity. Experts predict this decision may influence other nations to reconsider tax treaties, reshaping international tax relations. India and Switzerland originally signed the tax agreement in 1994, with updates in 2000 and 2010.
If you like this post, please share your feedback in the comments section below so that we will upload more posts like this.
