Switzerland has announced its decision to suspend the Most Favoured Nation (MFN) clause in its Double Tax Avoidance Agreement (DTAA) with India, effective 1 January 2025. The move is expected to increase tax liabilities on dividend income for Indian entities operating in Switzerland.

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

In a statement released on December 11, the Swiss finance department cited the 2023 ruling of the Supreme Court as the reason to remove India’s MFN status.

Switzerland halts MFN status for India, MEA signals renegotiation of tax treaty. What it means for Indian firms

Switzerland has revoked India's 'Most Favoured Nation' status clause in the Double Taxation Avoidance Agreement (DTAA) between the two countries.

Dividends of Indian entities will be taxed at 10% in Switzerland from January 1 as the European nation has suspended the most favoured nation (MFN) clause in its Double Taxation Avoidance Agreement (DTAA) with India.

Switzerland has withdrawn the most-favored-nation clause for India under their double tax avoidance agreement. This comes after a 2023 Indian Supreme Court ruling against Nestle, impacting Indian companies invested in Switzerland.

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.

This decision comes after an adverse ruling from the Indian Supreme Court regarding a tax dispute involving Nestlé, the Swiss food giant headquartered in Vevey.

Switzerland suspends MFN status for India, leading to higher tax liabilities for Indian entities in Switzerland from 2025.