Switzerland has suspended the MFN clause in its DTAA with India, potentially increasing taxes on Indian firms in Switzerland and affecting Swiss investments in India

Switzerland has suspended most-favored-nation status for India under their tax treaty, but Indian officials say the immediate trade impact will be minimal. The move raises concerns about investment flows under the European Free Trade Association agreement,

Switzerland had reduced the withholding tax on Indian entities operating in that country to 5 per cent from 10 per cent earlier

Switzerland’s suspension of the MFN clause in its tax treaty with India will double dividend tax rates for Indian investors. Mint examines the Nestle case, the Supreme Court’s ruling, and its wider impact on trade relations.