In New Delhi, a Swiss official confirmed that the decision to modify the understanding of the Most Favored Nation clause within the double taxation agreement with India will not affect the strong financial and economic relationships between the two nations. The adaptation merely aligns the clause with India’s interpretation without suspending or retracting it, ensuring that both countries continue adhering to the tax policies as stipulated by their bilateral agreement.
During an exclusive discussion with ANI, State Secretary Alexandra Fasel emphasized that concerns regarding potential additional taxes for Indian companies operating in Switzerland were unfounded. Taxation principles remain governed strictly by the agreed terms of the double taxation agreement, meaning Indian and Swiss companies will continue to follow the previously established tax protocols.
Fasel also expressed optimism about future economic cooperation, particularly highlighting the Trade and Economic Partnership Agreement (TEPA), which has been finalized and is awaiting ratification. This free trade agreement with the European Free Trade Association members, including Switzerland, is expected to facilitate robust investment flows and stimulate job creation in India, thereby cementing a productive bilateral relationship for years to come.