|International Tax Rules||22||69.71|
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.