Switzerland will suspend the Most-Favoured-Nation (MFN) clause in its Double Taxation Avoidance Agreement (DTAA) with India from January 1, 2025. This may lead to higher tax burdens for Indian companies in Switzerland and Swiss investors in India, affecting bilateral investments. MFN means trade concessions granted to one partner must be extended to all partners, promoting fairness. It aims to replace power-based policies with a rules-based system. Exemptions include bilateral agreements, special access for developing countries, and trade blocs like the EU. MFN can be removed without formal procedure, as seen when India revoked it for Pakistan in 2019.
This Question is Also Available in:
ಕನ್ನಡमराठीहिन्दी