Iceland: Increase of withholding tax adopted by Parliament - update


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.


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.