On 21 December 2009, the parliament approved the Budget Bill for 2010. The Budget Bill also contained the following:
|-||The 10% ownership requirement for the non-taxation of capital gains from the corporate sale of shares and inter-company dividends will take effect only from the tax year 2012 and apply to sales made in 2011 and dividends distributed in 2011, provided that the losses carried forward have been exhausted.|
|-||Interest, royalties and capital gains received from Iceland by non-resident individuals and corporate entities are taxable for their gross amount (previously, net amount).|
|-||The standard VAT rate is increased to 25.5% with effect from 1 January 2010 (but no additional VAT rates are introduced).|
|-||Fees on carbon products such as gasoline, jet fuel and combustion oil, ranging from ISK 2.60 to ISK 3.60 per litre of manufactured or imported fuel are introduced. These fees are, however, only effective from 1 January 2012 to 31 December 2012.|
|-||Social security contributions paid by the employer are increased to 8.65%.|
The current withholding tax rates which apply to payments made to non-residents are:
|-||15% on dividends for corporate entities, 18% for individuals. The withholding tax is, however, reimbursed the following year on dividends paid to companies resident in another EEA country, i.e. a final withholding tax of 0%.|
|-||15% on interest for corporate entities, 18% for individuals. Interest income for individuals up to ISK 100,000 is exempt and reimbursed the following year when the individual subsequently submitted a tax return.|
|-||18% on royalties.|
|-||15% on capital gains for corporate entities, 18% for individuals.|
|-||18% on technical and management services for corporate entities; 28.12%, for individuals.|
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