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

Switzerland Suspends India's Most Favoured Nation Status in Agreement to Avoid Double Taxation

Asked for comment, the external affairs ministry said it did not have further details on the subject.

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

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

Switzerland Suspends Most Favoured Nation Status To India Over 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.

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

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.

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

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

Switzerland Revokes India's MFN Status Amid Nestle Tax Dispute

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.