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August 17, 2025

From treaty abuse to tax integrity and sustainability: Swiss practices under OECD BEPS Action 6

Key Points

OECD BEPS Action 6 influences tax integrity by addressing treaty abuse and enhancing compliance with economic substance regulations.
The research identifies how Switzerland's recent treaty amendments improve alignment between taxation and genuine economic activity.
Using doctrinal legal analysis, the study evaluates beneficial ownership tests and anti-abuse rules in Swiss tax legislation.
These findings suggest that Switzerland actively integrates OECD standards to ensure sustainable taxation and combat treaty shopping.

Abstract

The sustainability of tax systems has emerged as a pressing challenge in the era of economic globalization and digitalization, where gaps in traditional tax rules facilitated Base Erosion and Profit Shifting (BEPS). This article examines the relevance and impact of the OECD’s BEPS Action 6, with a focus on Switzerland’s implementation and practice. The research objective is to assess how Action 6 strengthens legal coherence, enhances economic substance requirements, and curbs treaty abuse, including treaty shopping. Using a doctrinal legal analysis of OECD instruments, Swiss legislative measures, and relevant case law, this study identifies practical trends in beneficial ownership tests, anti-abuse rules, and substance-based treaty entitlement. The findings indicate that Switzerland has integrated Action 6 standards through targeted treaty amendments and administrative practice, improving the alignment between taxation and genuine economic activity.

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