Iceland taxes
Iceland is an island country located on the western side of Northern Europe. The capital of Iceland is Reykjavik, the country's population is 325 people.
Despite the fact that the country is not among offshore zones, on the territory of the state there is a fairly loyal tax law. There are 9 tax departments in the country.
As practice shows, favorable conditions prevail in Iceland for the development of successful businesses, both by local entrepreneurs and foreign businessmen.
Economy of Iceland
built according to the Scandinavian model, and is considered one of the most developed in the world
The economic situation of the island country of Northern Europe is characterized by low unemployment, increased rates of economic development, and even distribution of income.
Since 2010, the tourism sector has continued to develop in Iceland, which certainly contributes to the intensive progression of economic indicators. The main monetary sources of the state treasury are tax payments/customs duties.
The government receives a good level of income from the telephone, postal niches, also shipping and some monopolies (tobacco products, alcohol products). According to current legislation, the state subsidizes creative individuals (writers/artists), the agricultural industry and other industrial sectors.
Taxation in Iceland
Icelandic companies pay the following tax payments:
- asset tax in the amount of 1,5%;
- income tax – 30%.
There is no foreign exchange regulation in Iceland. The existing reporting requirement established by the Central Bank is more necessary for reporting statistics.
All Icelandic organizations must prepare and present financial statements correctly, in full compliance with generally accepted accounting standards. Leading experts of the Company will help you deal with this issue. «E-COMMERCE BROKER. We have solid experience in industries with high (gaming trading account, technical support) and low risk (online stores, transport companies).
Current Icelandic tax percentages:
- Personal income tax – 33-46%.
- Corporate income tax – 20%.
- VAT – 24%, for several types of goods/services a rate of 11% is applied.
It is worth noting that enterprises officially registered in Icelandic territory and receiving the majority of their income from foreign sources have the right to maintain financial statements in foreign currency.
Annual reports of each company are stored for 25 years, incoming/outgoing correspondence - for at least 7 years. Records can be stored both in documentary form and in electronic form. This reporting must be conducted in a foreign language.
If you wish open a company in Iceland, We suggest that you receive detailed consultation in advance to familiarize yourself with taxation in Iceland find out local laws in the area you are interested in, and understand the possible optimization of the tax system.
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