Recent development in the Dividend Taxation regime in India: Significance for Swiss Investor

Webinar on Recent developments in the Dividend Taxation regime in India: Significance for Swiss Investors 

Date: 27 October, 2021

Time: 04:30 pm to 05:30 pm IST  |  01: 00 pm to 02:00 pm CET

Registration link

As a significant overhaul of the Indian dividend taxation regime, the classical withholding tax on dividends has replaced the erstwhile dividend distribution tax (DDT) with effect from 1 April 2020.

This offers an opportunity for an Indian company to withhold taxes at the beneficial Tax Treaty rates while paying dividend to non-resident shareholders. While the India-Switzerland Tax Treaty prescribes a beneficial tax rate of 10 per cent for beneficial owners of dividends vis-à-vis the withholding tax rate of 20 per cent (plus applicable surcharge and cess) under Indian law, the Most-Favored-Nation clause (MFN) in the Protocol paves the way for a further reduced rate of 5 per cent. Applicability of the reduced 5 per cent rate under the MFN clause has recently been supported by a favorable ruling by an Indian High Court. 

Recently, the Swiss federal authorities have also issued a decree wherein it has supported the interpretation of MFN clause (i.e., 5 per cent tax rate) in the context of India – Switzerland tax treaty.

In light of these developments, we are pleased to invite you for a webinar organized along with KPMG on exploring the new opportunities especially in the context of the benefit under India – Switzerland tax treaty, have discussion on potential group reorganizations, beneficial ownership test and recouping the excess DDT paid on historic dividends.

It will also be followed by the Q&A session at the end of the webinar.

We look forward to your participation in the webinar!