Austrian tax treaties eliminate double taxation either by exempting income (exemption method) or allowing, as a deduction from the tax on the income, an amount equal to the tax paid (credit method). In the event of losses suffered by the Austrian taxpayer, the source state’s taxes cannot be credited, due to a lack of Austrian taxes to be paid. A recent judgment by the Austrian supreme Administrative Court (VwGH 27. 11. 2014, 2012/15/0002) did not allow a tax credit carry-forward in such a case, although the income attributable to the source state is taxed twice. This is due to the fact that the income taxed in the particular assessment period reduces the loss carry-forward in Austria in forthcoming periods. The court’s reasoning underlying the judgment was that, by allowing a tax credit carry-forward, foreign taxes would be credited to a different subject which is taxed twice. Based on the wording of the OECD Model Tax Convention Stefan Bendlinger supports the view that Austrian tax treaties provide sufficient legal basis for granting a tax credit carry-forward in such situations.