Section 3 paragraph 1 number 10 of the Austrian Income Tax Act provides for tax exemption of certain activities performed outside Austria. Even though this provision had already been introduced in 1980, cases have not been referred to the courts until recent years. Based on the decisions of the Administrative Court, the text of the provision was amended in 2006. Andreas Walch deals with this provision in detail and outlines the prerequisites for tax exemption. Problems with respect to Community law are also covered. A glossary shows which activities are privileged and which not. The requirement that the activity abroad exceed one month's time is analyzed, citing examples. Finally, the relation between privileged foreign activities under the Income Tax Act and tax treaties is examined.