Iceland, a European island, is a country located in the North Atlantic Ocean. The Icelandic population is about 370,000, and the capital city is Reykjavík. The currency is the Icelandic króna (ISK), and the official language is Icelandic.
Althingi, Iceland’s present-day parliament, is one of the world’s oldest existing national assemblies. Founded at Thingvellir in 930 AD, the country’s democratic system of government was completely unique in its day. In 1262, Iceland came under the Norwegian king and, later, at the end of the 14th century, Iceland was brought under Danish rule. Throughout the next two centuries, Iceland was crippled by rampant foreign profiteering, beset by international pirates, and subject to an increasing number of natural disasters. The 18th century marked the most tragic age in Iceland's history. The population sank to about 35,000. The 19th and 20th centuries are marked as stepping stones towards independence, and by 1918 Denmark had recognised Iceland as a fully sovereign state united with Denmark under a common king. Finally, Iceland became an independent republic on 17 June 1944 and has remained as such to this day. Its sovereign is the president, who is voted in general election every four years. The parliament, Althingi, is comprised of 63 individuals voted in general election every four years.
The fish industry (fishing and processing) and the tourism industry are the main economic activities in Iceland. Other important activities include aluminium smelting and agriculture.
PwC Iceland offers a full range of audit and assurance services, tax consulting services, and business advisory services. PwC Legal ehf. provides legal services to clients requiring legal assistance. Our local offices are based in Reykjavík, Akureyri, Húsavík, Selfoss, Hvolsvöllur, and Reykjanesbær.
|Corporate income tax (CIT) rates|
|Headline CIT rate (%)||
|Corporate income tax (CIT) due dates|
|CIT return due date||
|CIT final payment due date||
1 November and 1 December
|CIT estimated payment due dates||
Advance tax is due on the first day of every month, except January and October.
|Personal income tax (PIT) rates|
|Headline PIT rate (%)||
31.8, plus municipal tax
|Personal income tax (PIT) due dates|
|PIT return due date||
|PIT final payment due date||
Any deficit is collected on five due dates each year (first day of July to December).
|PIT estimated payment due dates||
|Value-added tax (VAT) rates|
|Standard VAT rate (%)||
|Withholding tax (WHT) rates|
|WHT rates (%) (Div/Int/Roy)||
Resident: 22 / 22 / 0;
Non-resident: 20 / 12 / 20
|Capital gains tax (CGT) rates|
|Headline corporate capital gains tax rate (%)||
Capital gains are subject to the normal CIT rate.
|Headline individual capital gains tax rate (%)||
|Net wealth/worth tax rates|
|Headline net wealth/worth tax rate (%)||
|Inheritance and gift tax rates|
|Headline inheritance tax rate (%)||
|Headline gift tax rate (%)||
Gifts are taxable as ordinary income.