Iceland

The Icelandic Corporate Income Tax (CIT) rate is 20% for limited liability companies and limited partnership companies. Other types of legal entities (e.g. partnerships) are taxed at 37.6%. Companies in Iceland are required to submit their CIT return by May 31 each year. Final CIT payments are due on November 1 and December 1. Companies must also make advance CIT payments on the first day of every month, except for January and October.

In Iceland, the Personal Income Tax (PIT) rate is 31.35%, in addition to a municipal tax. Taxpayers must file their PIT return by March 14. Any tax deficits are collected on five due dates throughout the year, from July to December. PIT payments are made monthly, ensuring that tax obligations are spread evenly across the year.

Icelandic Capital Gains Tax (CGT) is applicable at a rate of 22% for individual taxpayers. Corporate capital gains are taxed at the normal CIT rate of 20% for limited liability companies and limited partnerships. This tax is levied on the profits realized from the sale of assets.

Stamp duty in Iceland is levied on documents relating to the change of ownership of real estate and land. The duty rates are 0.8% and 1.6%, depending on whether the owner is an individual or legal entity. However, stamp duty is not applied when ownership changes due to mergers or company divisions. All other documents are exempt from stamp duty, making it a targeted tax primarily affecting real estate transactions.

In Iceland, VAT is a consumption tax applied to all stages of domestic business transactions. The general VAT rate is 24%, with a reduced rate of 11% applicable to certain goods and services. These include rental accommodations, passenger transportation services, and subscriptions to radio and television. The VAT ensures that the consumption of goods and services is taxed comprehensively, contributing significantly to the national revenue.