Iceland's Rankings
Overall Rank2261.79
Corporate Taxes1168.36
Individual Taxes2856.73
Consumption Taxes1969.3
Property Taxes2358.74
International Tax Rules2269.71

Iceland ranks 22nd overall on the 2019 International Tax Competitiveness Index, three spots better than in 2018.


  • Iceland's corporate tax rate of 20 percent is below the OECD average of 23.6 percent.
  • Corporate, consumption, and labor taxes are less complex than they are on average in the OECD.
  • Iceland has a territorial tax system that fully exempts foreign dividends and capital gains with no country limitations.


  • Companies are severely limited in the amount of net operating losses they can use to offset future profits, and companies cannot use losses to reduce past taxable income.
  • The VAT of 24 percent applies to a relatively narrow tax base.
  • Iceland's Controlled Foreign Corporation rules apply to both passive and active income.

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