Effective tax rates: Corporate tax statistics … expenditure average in Iceland
Iceland: Effective tax rates: Corporate tax statistics … expenditure average was 3.23 Percentage of taxable income in 2025. ▼ Falling
Effective tax rates for expenditure based tax incentives - Corporate in Iceland, 2019–2025
Source: Organisation for Economic Co-operation and Development. Measured in Percentage of taxable income.
Analysis
In 2025, effective tax rates for expenditure based tax incentives - corporate in Iceland stood at 3.23 Percentage of taxable income. That is the lowest value across all 7 years on record.
That represents a change of down 22.0% on the previous year and down 48.8% over ten years.
Iceland ranks 45th of 50 countries on this measure, in the bottom quarter.
Effective tax rates: Corporate tax statistics … expenditure average in Iceland, year by year
| Year | Percentage of taxable income | Change |
|---|---|---|
| 2019 | 6.31 Percentage of taxable income | — |
| 2020 | 3.31 Percentage of taxable income | -47.5% |
| 2021 | 3.23 Percentage of taxable income | -2.4% |
| 2022 | 3.23 Percentage of taxable income | +0.0% |
| 2023 | 3.23 Percentage of taxable income | +0.0% |
| 2024 | 4.14 Percentage of taxable income | +28.2% |
| 2025 | 3.23 Percentage of taxable income | -22.0% |
Iceland compared with similar countries
- Iceland's 3.23 Percentage of taxable income is below the median for high income countries, which is 12.71 Percentage of taxable income, 25% of the median. (40 countries reporting)
- Iceland's 3.23 Percentage of taxable income is below the median for Europe & Central Asia, which is 10.17 Percentage of taxable income, 32% of the median. (29 countries reporting)
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2010s | 6.31 Percentage of taxable income | 6.31 Percentage of taxable income | 6.31 Percentage of taxable income | 1 |
| 2020s | 3.4 Percentage of taxable income | 3.23 Percentage of taxable income | 4.14 Percentage of taxable income | 6 |
Countries ranked near Iceland
- 42 Slovenia 7.63 Percentage of taxable income compare
- 43 Czechia 7.4 Percentage of taxable income compare
- 44 Hong Kong 6.12 Percentage of taxable income compare
- 46 Singapore 2.08 Percentage of taxable income compare
- 47 Hungary 0.51 Percentage of taxable income compare
- 48 Poland -2.66 Percentage of taxable income compare
More economy & growth data for Iceland
- Real gdp growth, annual growth rate -125.5 % change on previous year (2024)
- Africa's Development Dynamics (AfDD) Table 04 - Annual real GDP 1.96 Percent per annum (2029)
- Africa's Development Dynamics (AfDD) Table 02 - Annual real GDP 2.48 Percent per annum (2029)
- SDRs holdings, US dollar, annual growth rate 5.55 % change on previous year (2025)
- SDRs holdings, US dollar, per unit of GDP 0.0153 units per US$ of GDP (2025)
- SDRs holdings, US dollar, per capita 1,500 units per person (2025)
- SDRs holdings, SDR, annual growth rate 0.5124 % change on previous year (2025)
- SDRs holdings, SDR, per unit of GDP 0.0111 units per US$ of GDP (2025)
- SDRs holdings, SDR, per capita 1,095 units per person (2025)
- IMF holdings of currency, US dollar, annual growth rate 5.01 % change on previous year (2025)
Frequently asked questions
- What is effective tax rates for expenditure based tax incentives - corporate in Iceland?
- Effective tax rates for expenditure based tax incentives - corporate in Iceland was 3.23 Percentage of taxable income in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest effective tax rates for expenditure based tax incentives - corporate recorded in Iceland?
- The highest recorded value was 6.31 Percentage of taxable income in 2019.
- What is the lowest effective tax rates for expenditure based tax incentives - corporate recorded in Iceland?
- The lowest recorded value was 3.23 Percentage of taxable income in 2021.
- How does Iceland rank for effective tax rates for expenditure based tax incentives - corporate?
- Iceland ranks 45th out of 50 countries with data for 2025.
- Is effective tax rates for expenditure based tax incentives - corporate rising or falling in Iceland?
- Over the last ten years it is down 48.8%. The long-run trend across the full record is falling.
- Where does this Iceland data come from?
- The figures come from Organisation for Economic Co-operation and Development, published as part of Effective tax rates for expenditure based tax incentives - Corporate tax statistics — Effective average tax rate. Statizoid updates them automatically from the source API.
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About this data
This table reports synthetic tax policy indicators that capture the effect of expenditure-based R&D tax incentives on firms’ investment costs: The EATR for R&D measures the impact of taxation on R&D investments that earn an economic profit. the user cost of capital for R&D measures the return that a firm needs to realise on an R&D investment before tax to offset all costs and taxes that arise from the investment, making zero economic profit. Further methodological information is available in the explanatory annex.