Iceland corporate tax rate
The standard rate of tekjuskattur lögaðila (corporate income tax) on the net taxable profit of Icelandic-resident limited liability companies, levied under Lög nr. 90/2003 um tekjuskatt and assessed annually by Skatturinn (Iceland Revenue and Customs). Applies to hlutafélög (hf.), einkahlutafélög (ehf.), samlagshlutafélög that are independent taxpayers, mutual insurance and guarantee companies, and co-operative societies. There is no separate municipal or local corporate income tax in Iceland.
| Current value | 20 percent |
|---|---|
| In force from | 2011-01-01 |
| Official source | Skatturinn — 'Álagningarseðill og forsendur 2026' (assessment notice and assumptions, 2026 assessment on income year 2025): 20% for registered limited companies and private limited companies; 37.6% for sameignarfélög/samlagsfélög that are independent taxpayers; 22% on dividends received by entities in the 37.6% class; financial-activities levy 0.145% on liabilities above ISK 50bn. Entity classification per Skatturinn's 'Tekjuskattur' page (https://www.skatturinn.is/atvinnurekstur/skattar-og-gjold/tekjuskattur/), and rate confirmed for cross-border cases on Skatturinn's 'Limited tax liability' page (20% for companies with limited liability, 37.6% for companies with unlimited liability). |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
ONE HEADLINE RATE, SEVERAL LOOKALIKES — the entity form decides the rate, which is the trap in Iceland. 20% is the rate for LIMITED-LIABILITY forms: hlutafélög (public limited), einkahlutafélög (private limited), samlagshlutafélög that are independent taxpayers, mutual insurance and guarantee companies, kaupfélög and other co-operatives and co-operative unions. 37.6% (notes only, NOT the served headline) applies to UNLIMITED-LIABILITY and residual forms that are independent taxpayers: sameignarfélög (general partnerships) and samlagsfélög (limited partnerships) registered as separate taxpayers, producer/marketing associations that are independent taxpayers, bankruptcy and probate estates, and other associations, funds and institutions carrying on business — including otherwise non-profit bodies to the extent they trade. Entities in the 37.6% class pay only 22% on dividends received from limited companies. Bodies, funds and institutions that carry on NO business are outside income tax altogether. History: the 20% rate has applied since the 2011 income year — Iceland raised the corporate rate from 15% to 18% for 2010 and to 20% for 2011 in the post-crisis consolidation, with the partnership rate moving 24% → 33% → 36% and settling at 37.6%. Sector overlay (notes only): financial undertakings pay a sérstakur skattur á fjármálafyrirtæki (bank levy) of 0.145% on total liabilities exceeding ISK 50bn, plus a financial-activities tax on wages — these are separate taxes, not a different corporate income tax rate. Withholding for non-residents on Icelandic-source dividends and capital gains is 20% for companies. Note the assessment-year convention: the '2026' assessment page sets the rates applied in 2026 to the 2025 income year; the 20%/37.6% pair has been stable across both.
Get it programmatically
curl https://euroref.dev/v1/is/corporate-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://euroref.dev/v1/is/corporate-tax/history?from=2020-01-01
# Provenance: curl https://euroref.dev/provenance/is/corporate-taxOther Iceland series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · income tax rates · official exchange rates