Iceland has implemented an overall increase in withholding tax rates effective 1 January 2018 as follows:
- Dividends - increased from 18% to 20%
- Interest - increased from 10% to 12%
- Royalties - increased from 20% to 22%
- Fees for technical services - increased from 20% to 22%
- Capital Gains on shares - increased from 20% to 22%
The above rates may all be reduced under an applicable tax treaty. Further, residents in EEA countries may apply for a full refund for tax withheld on dividends and ca…