Effective tax rates for income based tax incentives - Corporate tax in Iceland
Iceland: Effective tax rates for income based tax incentives - Corporate tax was 17.46 Percentage of taxable income in 2025. ▼ Falling
Effective tax rates for income based tax incentives - Corporate tax in Iceland, 2000–2025
Source: Organisation for Economic Co-operation and Development. Measured in Percentage of taxable income.
Analysis
The most recent figure for effective tax rates for income based tax incentives - corporate tax in Iceland is 17.46 Percentage of taxable income, measured in 2025.
That represents a change of down 4.7% on the previous year and unchanged over ten years.
Over the whole period, effective tax rates for income based tax incentives - corporate tax in Iceland peaked at 26.18 Percentage of taxable income in 2000 and was at its lowest, 13.09 Percentage of taxable income, in 2008.
Iceland ranks 29th of 41 countries on this measure, in the middle of the range.
The long-run direction has been consistently falling across the 26 years of available data.
Effective tax rates for income based tax incentives - Corporate tax in Iceland, year by year
| Year | Percentage of taxable income | Change |
|---|---|---|
| 2000 | 26.18 Percentage of taxable income | — |
| 2001 | 26.18 Percentage of taxable income | +0.0% |
| 2002 | 15.71 Percentage of taxable income | -40.0% |
| 2003 | 15.71 Percentage of taxable income | +0.0% |
| 2004 | 15.71 Percentage of taxable income | +0.0% |
| 2005 | 15.71 Percentage of taxable income | +0.0% |
| 2006 | 15.71 Percentage of taxable income | +0.0% |
| 2007 | 15.71 Percentage of taxable income | +0.0% |
| 2008 | 13.09 Percentage of taxable income | -16.7% |
| 2009 | 13.09 Percentage of taxable income | +0.0% |
| 2010 | 15.71 Percentage of taxable income | +20.0% |
| 2011 | 17.46 Percentage of taxable income | +11.1% |
| 2012 | 17.46 Percentage of taxable income | +0.0% |
| 2013 | 17.46 Percentage of taxable income | +0.0% |
| 2014 | 17.46 Percentage of taxable income | +0.0% |
| 2015 | 17.46 Percentage of taxable income | +0.0% |
| 2016 | 17.46 Percentage of taxable income | +0.0% |
| 2017 | 17.46 Percentage of taxable income | +0.0% |
| 2018 | 17.46 Percentage of taxable income | +0.0% |
| 2019 | 17.46 Percentage of taxable income | +0.0% |
| 2020 | 17.46 Percentage of taxable income | +0.0% |
| 2021 | 17.46 Percentage of taxable income | +0.0% |
| 2022 | 17.46 Percentage of taxable income | +0.0% |
| 2023 | 17.46 Percentage of taxable income | +0.0% |
| 2024 | 18.33 Percentage of taxable income | +5.0% |
| 2025 | 17.46 Percentage of taxable income | -4.7% |
Iceland compared with similar countries
- Iceland's 17.46 Percentage of taxable income is below the median for high income countries, which is 19.2 Percentage of taxable income, 91% of the median. (33 countries reporting)
- Iceland's 17.46 Percentage of taxable income is below the median for Europe & Central Asia, which is 17.98 Percentage of taxable income, 97% of the median. (25 countries reporting)
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 17.28 Percentage of taxable income | 13.09 Percentage of taxable income | 26.18 Percentage of taxable income | 10 |
| 2010s | 17.29 Percentage of taxable income | 15.71 Percentage of taxable income | 17.46 Percentage of taxable income | 10 |
| 2020s | 17.61 Percentage of taxable income | 17.46 Percentage of taxable income | 18.33 Percentage of taxable income | 6 |
Countries ranked near Iceland
More economy & growth data for Iceland
- 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)
- Foreign direct investment, net outflows (BoP, current US$), gaps -851.71 million BoP, current US$ (2025)
- Foreign direct investment, net outflows (BoP, current US$), per unit -0.0221 BoP, current US$ per US$ of GDP (2025)
- Foreign direct investment, net outflows (BoP, current US$), per capita -2,170 BoP, current US$ per person (2025)
- Foreign direct investment, net inflows (BoP, current US$), gaps filled -201.70 million BoP, current US$ (2025)
- Foreign direct investment, net inflows (BoP, current US$), annual -107.12 % change on previous year (2025)
- Foreign direct investment, net inflows (BoP, current US$), per unit -0.0052 BoP, current US$ per US$ of GDP (2025)
- Foreign direct investment, net inflows (BoP, current US$), per capita -514.02 BoP, current US$ per person (2025)
- Total reserves (includes gold, current US$), annual growth rate 20.76 % change on previous year (2025)
Frequently asked questions
- What is effective tax rates for income based tax incentives - corporate tax in Iceland?
- Effective tax rates for income based tax incentives - corporate tax in Iceland was 17.46 Percentage of taxable income in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest effective tax rates for income based tax incentives - corporate tax recorded in Iceland?
- The highest recorded value was 26.18 Percentage of taxable income in 2000.
- What is the lowest effective tax rates for income based tax incentives - corporate tax recorded in Iceland?
- The lowest recorded value was 13.09 Percentage of taxable income in 2008.
- How does Iceland rank for effective tax rates for income based tax incentives - corporate tax?
- Iceland ranks 29th out of 41 countries with data for 2025.
- Is effective tax rates for income based tax incentives - corporate tax rising or falling in Iceland?
- Over the last ten years it is unchanged. 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 income 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 income-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.