Iceland

Dividends paid to a resident company are subject to 22% WHT. Dividends paid to a non-resident company are subject to 20% WHT. The final taxation of dividends paid to a company within the EEA is nil, as WHT will be reimbursed in the year following payment upon filing a tax return.

Interest paid to a resident company is subject to 22% WHT, and interest paid to a non-resident company is subject to 12% WHT.

Gross royalties paid to a non-resident are taxable at the standard 22% CIT rate and subject to withholding.

Iceland has signed a draft of a treaty with both Andorra and Australia that are expected to be ratified in coming years.

Notes

1. The lower rate applies to corporate shareholders with a minimum ownership of 10%.
2. The lower rate applies to corporate shareholders with a minimum ownership of 25%.
3. The lower rate applies to copyright royalties (except films, etc.) and royalties for computer software or patent, or for information concerning industrial, commercial, or scientific experience (except information provided in connection with a rental or franchise agreement).
4. The lower rate applies to royalties paid for the use of industrial, commercial, or scientific equipment.
5. The lower rate applies to the right to use computer software or patent concerning industrial, commercial, or scientific experience.
6. The lower rate applies to corporate shareholders with a minimum ownership of 10%, and which has been held for a period of at least 12 months preceding the date the dividends were declared.
7. The lower rate applies to Russian corporate shareholders with a minimum ownership of 25% of capital in the Icelandic company and the foreign capital invested exceeds 100,000 United States dollars (USD).
8. The higher rate applies to royalties for the use of trademarks, know-how in relation to a trademark, and films, etc.
9. The higher rate applies to royalties for the use of or the right to use any patent, trademark, design or model, plan, secret formula, or process.