Switzerland-based FPIs to face higher dividend tax on India income

Tax liability doubles following rollback of beneficial tax rate on income from India

The Swiss Federal Department of Finance’s move to suspend the Most Favoured Nation (MFN) clause with India is likely to impact domestic companies and residents operating in the mountainous European country.

 

According to legal experts, income or dividends received by them could now be taxed at 10 per cent, as the concessional rate of 5 per cent can no longer be availed.

 

"The recent developments may impact the tax on dividends received by Indian companies from their investments in Swiss subsidiaries. The Indian Supreme Court's ruling in October 2023 had already precluded Swiss investors from availing of the lower 5