<h4>Switzerland Rescinds MFN Clause Application with India</h4><p><strong>Switzerland</strong> has recently decided to withdraw its unilateral application of the <strong>Most-Favoured-Nation (MFN) clause</strong> within its existing <strong>Double Tax Avoidance Agreement (DTAA)</strong> with <strong>India</strong>.</p><p>This move signifies a change in how tax treaties are interpreted and applied between the two nations, potentially impacting financial flows and tax liabilities for entities operating across both jurisdictions.</p><div class='key-point-box'><p>The <strong>MFN clause</strong> in a <strong>DTAA</strong> ensures that if one contracting state grants more favorable tax treatment to a third state, the same favorable treatment is automatically extended to the other contracting state.</p></div><h4>Understanding Switzerland</h4><p><strong>Switzerland</strong>, officially known as the <strong>Swiss Confederation</strong>, is a small, landlocked country located in <strong>Central Europe</strong>. It is renowned for its picturesque <strong>Alps mountains</strong>, serene lakes, and expansive valleys.</p><p>It shares borders with <strong>France</strong>, <strong>Italy</strong>, <strong>Austria</strong>, <strong>Germany</strong>, and <strong>Liechtenstein</strong>. Importantly, <strong>Switzerland</strong> is not a member of the <strong>European Union (EU)</strong> or <strong>NATO</strong>.</p><div class='info-box'><p><strong>Switzerland</strong> is historically recognized for its robust and often secretive <strong>banking sector</strong>, which has played a significant role in global finance.</p></div>