Switzerland has unilaterally decided to suspend the most favoured nation (MFN) clause in its Double Taxation Avoidance Agreement (DTAA) with India. The move comes after the Supreme Court of India's ruling in the Nestle case. The move is expected to have a significant impact on the operations of Indian companies in Switzerland as well as Swiss investments in India.

Supreme Court’s ruling

In a statement released on December 11, the Swiss finance 

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Switzerland suspends India’s ‘most favoured nation’ status after SC’s Nestle 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.

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News18 India

Mukesh Ambani

Switzerland Suspends Most Favoured Nation Status To India Over Nestle Ruling

Switzerland has taken a unilateral stand after the Supreme Court of India's ruling in the Nestle case. It has revoked the 'Most Friendly Nation' or MFN status accorded to India under the Double Taxation Avoidance Agreement or DTAA treaty. Switzerland's move marks a significant shift in bilateral treaty dynamics and will result in a big impact on Indian companies operating in Switzerland as well as on Swiss investments in India. In its official s…

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Gautam Adani

New Delhi

Delhi

Switzerland Revokes India's 'Most Friendly Nation' Status Over Nestle Verdict

This means that from January 1, dividends of Indian entities will be taxed at 10% in Switzerland.

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Hindustan Times

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Switzerland suspends ‘most favoured nation’ status to India, cites SC's Nestle case ruling

The Swiss move poses risk to the $100 billion investment commitment in India over a 15-year period by the four-nation European Free Trade Association signed in March this year.

Indian Express

Viveck Goenka

Nestlé judgement fallout: Switzerland suspends MFN clause in tax avoidance pact with India, could impact $100 bn investment commitment under EFTA deal

Invesco

The Swiss government has suspended the MFN clause in its tax treaty with India, potentially leading to higher taxes on Indian companies operating in Switzerland. This move follows a Supreme Court ruling affecting the interpretation of the MFN clause.

India Today

Living Media

Switzerland cancels 'most favoured nation' status to India over Nestle ruling

A statement from Switzerland came on Friday itself that it had to take this step due to the decision of the Indian Supreme Court. In fact, last year, in a case related to Nestle, the Supreme Court had ruled that DTAA cannot be implemented until it is notified under the Income Tax Act.

स्विट्जरलैंड की तरफ से शुक्रवार को ही बयान आया था कि भारतीय सुप्रीम कोर्ट के फैसले की वजह से उसे यह कदम उठाना पड़ा है. दरअसल, पिछले साल नेस्‍ले से संबंधित एक मामले में सुप्रीम कोर्ट ने फैसला दिया था कि DTAA तब तक लागू नहीं किया जा सकता जब तक कि इसे इनकम टैक्स एक्ट के तहत नोटिफाई न किया जाए.

स्विटजरलैंड से भारतीय कंपनियों को झटका, MFN को लिया वापस... नेस्‍ले विवाद के बाद एक्‍शन!

आज तक

Shock to Indian companies from Switzerland, MFN withdrawn... Action after Nestle controversy!

Get latest articles and stories on Latest News at LatestLY.   The suspension of the MFN (most favoured nation) clause by Switzerland underscores the need for India to adopt a more consistent and strategic approach to international taxation treaties, think tank GTRI said on Friday.
Latest News | MFN Clause Suspension by Switzerland: India Needs Strategic Approach for Int'l Taxation Treaties, Says GTRI.

Latestly

MFN Clause Suspension by Switzerland: India Needs Strategic Approach for Int'l Taxation Treaties, Says GTRI

Switzerland has revoked India's Most Favoured Nation status post an Indian court's ruling against Nestle, impacting Indian business operations there. From January 2025, Indian firms in Switzerland will face higher withholding taxes on income. This decision aligns with a recent Indian Supreme Court case involving Nestle.

Devdiscourse

Switzerland Revokes India's MFN Status Amid Nestle Tax Dispute

Switzerland has revoked India's most-favored-nation status due to an Indian Supreme Court ruling against Nestle.  Consequently, Indian companies operating in Switzerland will face a 10% withholding tax on dividends starting January 1, 2025, impacting their income generated there.

Switzerland suspends India’s ‘most favoured nation’ status after SC’s Nestle ruling

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