Two new developments are discussed in this article. First, on January 31, 2001, an ordinance was released by the Minister of Finance according to which the new rules of the Austro-German Tax Treaty, signed on August 24, 2000 (not yet in force) can immediately be put in operation with regard to the treatment of losses incurred in Austrian permanent establishments of German taxpayers. The new rules provide that losses incurred since 1998 can be carried forward in Austria in complete disregard of the provision of Sec. 102 (2) (2) Income Tax Act which limits the right for such carry-forward to cases where the world wide income of the taxpayer cannot absorb the Austrian loss. Losses incurred before 1998 will be taken into account by Germany provided that this is still possible under its statute of limitation; otherwise Austria will grant a carry-forward also with regard to such losses. The second development is related to the AMID-decision of the European Court of Justice. As the court is of the opinion that losses incurred by the Belgian head office of a Belgian taxpayer must not be subjected to a set-off against the profits of a permanent establishment situated in Luxembourg in order ...