Corporate income tax is lower in Iceland than in the other Nordic countries where it ranges from 28% to 30% comparing to 18% in Iceland. Similarly, the capital income tax is higher in the other Nordic countries, 28-30% in Norway and Sweden and 28-43% in Denmark, compared to a 10% tax in Iceland.

The table below indicates what becomes of companies income after corporate income tax and withholding tax has been levied. In Iceland, corporate income tax is 18%, which means that 82% of the original income is left. If all the profit is paid out after corporate income tax, a 10% capital income tax is levied on what remains, corresponding to 8.2% of the original profit. In total, the tax is 26.2%, which means that the shareholder receives 73.8% compared to 71% in Finland, 72% in Norway and 50.4% in Denmark and Sweden.

Source: Ministry of Finance