Legal Business

Sponsored Q&A: BBA//Fjeldco

1. What are the key tax laws and regulations in Iceland that individuals and businesses should be aware of?

Under the Icelandic Income Tax Act no. 90/2003, resident corporations pay tax on their worldwide income (ie, unlimited tax liability) minus operating expenses. The general corporate tax rate is 20%. As a general practice, all businesses incorporated and registered in Iceland, or which have their effective management in Iceland are considered tax resident in Iceland.