Iceland: Increase of withholding tax adopted by Parliament - update

29.01.2018

Note: This announcement, originally published on 9 January 2018, has been further updated to include the non-resident rates applicable to dividend income and capital gains on equities transactions. Changes have been highlighted.

Clearstream Banking1 informs customers that effective

1 January 2018

and following the adoption of the Income Tax Law for 2018 by the Icelandic Parliament, the tax rates have increased as follows:

  • the standard rate of withholding tax on Icelandic interest, capital gains and dividend income has increased from 20% to 22%; 
  • the non-resident rate applicable to interest income has increased from 10% to 12%; and
  • the non-resident rate applicable to dividend income and capital gains on equities transactions has increased from 18% to 20%.

Further information

For further information, please contact Clearstream Banking Client Services or your Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.