The Tax Amendment Act 2005 provides for several changes in the Austrian tax system. Some of them are of relevance also to external fiscal relations. Moreover, also five new tax treaties entered into force during the year 2005 which will become effective as of the taxable year 2006. The following article describes recent changes in the Austrian income/corporation tax legislation concerning limited tax liability of non-resident companies as provided for in the Tax Amendment Act 2005 as well as recent developments in the Austrian tax treaty network which became effective as of 1st January 2006. It also contains an outlook on the forthcoming Protocol amending the Austro-Swiss tax treaty and on changes in the interpretation of the Austro - Liechtenstein tax treaty.