Tax Treaties: United States And Iceland

Quick Summary.  Iceland is an independent parliamentary republic governed by a president and parliament.  Its national parliament, the Althingi, is the oldest national assembly in the world–giving Iceland claim to the world’s oldest assembly democracy.

Resident corporation are taxed on worldwide income.  Corporate income tax rates vary depending on whether the entity is a limited liability company, limited partnership company, or other legal entity.

Recent amendments to the Icelandic Income Tax Act no. 90/2003 provide for thin capitalization rules.

Resident individuals are taxed on worldwide income, while non-resident individuals are taxed on certain Icelandic-sourced income.

Treaty.

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