The application of the completed contract method in Austria and of the percentage of completion Method in construction PEs abroad may lead to mismatches in the avoidance of double taxation. Further, the newly introduced limitation of the use of foreign losses with the amount calculated according to the rules of the foreign state by the 1. Stability Act 2012 could be problematic where final losses occur or the credit method is applied. If the exemption method is applied in cases of a final profit in the PE, the limitation leads to an avoidance of the usage of notional losses. On the contrary, where there is a final loss, the limitation could lead to a situation where the loss could neither be used in Austria nor abroad. However, Christoph Plott and Florian Rosenberger conclude, in case of PEs in the EU, that the part of the (final) loss that could not be used because of the limitation has to be used – following the arguments of ECJ jurisdiction – at the moment when the loss becomes final. Because of systematic considerations the new limitation should not be applicable at all when the credit method is used. Additionally, the foreign tax has to be credited at the moment when the profi...