The tax treaty between Austria and Serbia was signed on May 7^th, 2010. It is of vital importance to close this loophole in the Austrian treaty network, since Serbia is one of the most important trade partners of Austria. A significant number of Austrian enterprises do business in Serbia. Statistical data (investments 2000–2008) even show that Austria is top investor in Serbia. A tax treaty has been a major concern of the Austrian economy for many years. Austria has – in contrast to other EU states – no tax treaty with the former Republic of Yugoslavia. In relation to EU member states which have such a treaty, Serbia continues to apply these provisions. Therefore, Austrian entrepreneurs suffer disadvantages. Last November a compromise could be reached, and the long-lasting negotiations were successfully finalised. Elfriede Zach presents an overview of the key elements of the new treaty.