Iceland

Paying Taxes in

Iceland

Listed below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures of administrative burden in paying taxes.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in December 2010.

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To see indicator data for all economies, see the Paying Taxes page. To see how economies rank, see the Rankings page.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Social security contributions 1 online filing 60 8.65% gross salaries 9.8
Corporate income tax 1 online filing 40 18.00% taxable profits 9.4
Pension contributions 12 8.00% gross salaries 9
Property tax 1 online filing 1.65% + 0.115% assessed value of property 2.6
Fuel tax 1 included in price of fuel 0.7
Tax on interest 0 18.0% interest income 0.5 not included
Weight distance tax 3 ISK 3.08 pr. Km Km driven per year 0.1
Vehicle tax 2 ISK 6,83 for the first 1.000 kg., ISK 9,21 for the next 2.000 kg and ISK 2.277 for each ton above 3.000 kg. This is paid jointly with disposal charge of ISK 350 per truck per each 6 month period. vehicle weight 0.1
Municipal tax 6 ISK 102/m2 + ISK 2.637 + 11.374 building area in square meters 0.1
Value added tax (VAT) 1 online filing 40 25.5% value added not included
Stamp duty on property transfer 1 0.40% transaction value small amount
Totals: 29 140 31.8
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