If your Indian company is making royalty or FTS (Fees for Technical Services) payments to a Swiss entity, Form 10F is mandatory to claim the reduced 10% DTAA rate instead of the standard 20% under Section 115A. This requirement applies to all foreign companies seeking Switzerland-India DTAA benefits. Without Form 10F, a Tax Residency Certificate (TRC), and a No-PE Declaration, the payer is liable to deduct TDS at the higher rate. Filing ITR in India becomes compulsory once DTAA benefits are claimed.

• Switzerland-India DTAA rate on royalties: 10% (vs. 20% under Section 115A)
• Mandatory documents: TRC, Form 10F, No-PE Declaration, PAN, Income Tax login
• DSC of the foreign authorised signatory is required to file ITR in India (not the Indian director's DSC)

What is Form 10F and Why is it Required for Switzerland-India Royalty Payments?

Form 10F is a self-declaration form under Section 90(5) of the Income Tax Act, 1961 and Rule 21AB of the Income Tax Rules. It must be filed by a non-resident entity (in this case, the Swiss company) to provide specific details that are not included in the Tax Residency Certificate (TRC) issued by the Swiss tax authorities.

For royalty payments flowing from India to Switzerland, the Indian payer is required to deduct TDS. If the Swiss recipient wants to claim the treaty benefit (10% rate under the Switzerland-India DTAA), it must furnish Form 10F, TRC, and a No-PE Declaration to the Indian payer before or at the time of payment. Without these, the Indian payer must deduct TDS at 20% under Section 115A (plus applicable surcharge and cess).

Note: Even if royalty or FTS is taxed at 20% under Section 115A without claiming DTAA benefits, the foreign company is not required to file an ITR in India. However, once it elects to claim Switzerland-India DTAA benefits at 10%, filing an ITR in India becomes mandatory.

Switzerland-India DTAA: Royalty and FTS Tax Rates

Tax Provision	Applicable Rate	ITR Filing Required?
Section 115A (without DTAA claim)	20% + surcharge + cess	No (if income is only royalty/FTS and TDS is deducted)
Switzerland-India DTAA (Article on Royalties)	10%	Yes – ITR mandatory if DTAA benefit is claimed

The Switzerland-India Double Taxation Avoidance Agreement caps the tax on royalties and FTS at 10% of the gross amount. This makes it significantly beneficial for Swiss companies receiving royalties from Indian entities to claim DTAA protection, provided they meet the compliance requirements.

What Documents are Required to Claim Switzerland-India DTAA Benefits on Royalties?

To claim the 10% DTAA rate on royalty payments, the Swiss foreign company must provide all of the following:

1. Tax Residency Certificate (TRC)

A TRC is issued by the Swiss Federal Tax Administration confirming that the entity is a tax resident of Switzerland. This is the foundational document for invoking any DTAA benefit under Indian tax law.

2. Form 10F

Since TRCs may not contain all information required under Rule 21AB, Form 10F must be filed separately. It captures details such as:

• Status of the taxpayer (company, individual, etc.)
• Nationality or country of incorporation
• Tax Identification Number (TIN) in Switzerland
• Period for which the TRC is valid
• Address of the non-resident during the relevant period

Important: Form 10F must now be filed online on the Indian Income Tax portal. This requires the foreign company to have an active Indian Income Tax login and a valid PAN card in India.

3. No Permanent Establishment (No-PE) Declaration

The Swiss company must declare that it does not have a Permanent Establishment (PE) in India within the meaning of the DTAA. If a PE exists, the royalty income may be attributed to the PE and taxed at higher rates as business income.

4. PAN Card (India)

The Swiss company must obtain a PAN card in India. This is needed to create an income tax login and to file Form 10F and the ITR electronically.

5. Income Tax Login (India)

An active login on the Indian Income Tax e-filing portal is required for the foreign entity. Without this, Form 10F cannot be submitted online.

6. Digital Signature Certificate (DSC) of the Foreign Authorised Signatory

This is a critical and often overlooked requirement. The DSC must belong to the authorised signatory of the foreign (Swiss) company. The DSC of an Indian director or partner will not be accepted. To obtain a DSC for a foreign individual, the following documents are required:

• Email OTP and phone OTP from the foreign individual
• Video verification of the foreign individual (conducted remotely)
• Address proof (such as a driving licence)
• Photograph
• Copy of passport

Step-by-Step Process to File Form 10F for Royalty Payments (Switzerland-India)

1. Obtain TRC from the Swiss Federal Tax Administration for the relevant financial year.
2. Apply for PAN in India for the Swiss company (Form 49AA for foreign companies).
3. Create Income Tax login on the Indian e-filing portal using the PAN.
4. Obtain DSC for the authorised signatory of the Swiss company (foreign individual DSC with video verification).
5. Register DSC on the Income Tax portal.
6. File Form 10F online on the e-filing portal with the details from the TRC.
7. Prepare No-PE Declaration on letterhead and provide it to the Indian payer.
8. Furnish documents to the Indian payer (TRC + Form 10F acknowledgement + No-PE Declaration) before TDS deduction.
9. File ITR in India for the year in which DTAA benefits are claimed, using the DSC of the foreign authorised signatory.

Consequences of Not Furnishing Form 10F

If Form 10F, TRC, or No-PE Declaration is not provided to the Indian payer:

• The Indian company must deduct TDS at 20% (plus surcharge and cess) under Section 115A instead of 10%.
• The Swiss company loses the DTAA benefit and the excess TDS deducted can only be recovered through an ITR refund claim, which extends timelines significantly.
• The Indian payer may face scrutiny for short deduction of TDS if the documents are not on record.

What if Royalty is Taxed Under Section 115A Without Claiming DTAA?

Under Section 115A, royalty and FTS received by a foreign company from India is taxed at a flat rate of 20%. In this scenario, if TDS has been properly deducted at 20%, the foreign company is not legally required to file an ITR in India. However, if the company wishes to apply for a refund of excess TDS, or to claim DTAA benefits at a later stage, it will need to file an ITR and comply with all the above-mentioned requirements.

Key Differences: Form 10F vs. TRC

Aspect	Tax Residency Certificate (TRC)	Form 10F
Issued by	Swiss Federal Tax Administration	Filed by the non-resident on the Indian Income Tax portal
Purpose	Proves Swiss tax residency	Supplements TRC with additional mandatory information
Validity	Per financial year	Per financial year (must align with TRC period)
Mandatory?	Yes, always required	Yes, if TRC does not contain all Rule 21AB details
Filing Mode	Offline (issued by Swiss authorities)	Online, on Indian e-filing portal

How Taxocity Helps Swiss Companies with Form 10F and DTAA Compliance

Taxocity has been supporting businesses with cross-border tax compliance since 1975, with a 4.8/5 rating from over 5,000 clients. Our team of real human tax experts manages the entire process for Swiss entities making or receiving royalty payments linked to India, including:

• PAN application and income tax login setup for foreign companies
• End-to-end Form 10F filing on the Indian e-filing portal
• Coordination for DSC procurement of foreign authorised signatories (including remote video verification)
• Drafting No-PE Declarations and DTAA benefit claims
• ITR filing in India for foreign entities claiming DTAA benefits
• Advisory on Section 115A vs. DTAA rate optimisation

With our 100% compliance guarantee, you can be confident that every document, form, and declaration meets the latest requirements of the Indian Income Tax Department. Our experts handle the complexity so your business can focus on its core operations.

Key Takeaways

1. Switzerland-India DTAA caps royalty/FTS tax at 10%; without DTAA claim, Section 115A applies at 20%.
2. To claim DTAA benefits, the Swiss company must furnish: TRC, Form 10F, No-PE Declaration, PAN, and Income Tax login.
3. Form 10F must be filed online using the foreign entity's own DSC (not an Indian director's DSC).
4. Claiming DTAA benefits makes ITR filing in India mandatory for the Swiss company.
5. The DSC for a foreign individual requires email/phone OTP, video verification, address proof, photo, and passport copy.
6. If DTAA is not claimed and TDS is deducted at 20% under Section 115A, ITR filing is not mandatory (but recommended for refund claims).

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Disclaimer: This article is intended for general informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and treaty provisions are subject to change. Please consult a qualified tax advisor or DTAA compliance expert before making any decisions related to cross-border royalty payments, Form 10F filing, or DTAA benefit claims.