Iceland Corporate Income Tax
Detailed corporate income tax rates and rules for Iceland in 2026.
Corporate TaxISK
Iceland levies corporate income tax at 21% for limited liability companies. Partnerships and cooperatives are taxed at 38.4%. Iceland offers a participation exemption for qualifying shareholdings and has implemented OECD BEPS measures.
Standard Rate
21%
Additional Notes
Tax losses can be carried forward for 10 years. Iceland has transfer pricing rules aligned with OECD guidelines. Special tax incentives exist for film production, innovation, and R&D. The fishing industry has specific licensing and resource fee arrangements.
How Iceland Corporate Tax compares
Iceland’s corporate tax rate of 21% is the 123rd highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
Iceland
21%
Europe average
19%
Global average
22.2%
