News Share

The Tax Hub

Daily Tax Newsletter


Responsive image

New Tax Treaty between Iceland and Switzerland Signed

On 10 July 2014, a new income and capital tax treaty between Iceland and Switzerland was signed. Once in force and effective, the treaty will replace the 1988 tax treaty between the two countries.

Taxes Covered

The treaty covers the Icelandic income taxes to the state and to municipalities, and Swiss federal, cantonal and communal taxes on income and capital.

Withholding Tax Rates

  • Dividends - 0% if the beneficial owner is a company directly holding at least 10% of the paying company's capital for at least 1 year prior to the payment, or is a pension fund; otherwise 15% (1988 treaty - 5% when holding at least 25%, otherwise 15%)
  • Interest - 0% (1988 treaty - 0%)
  • Royalties - 5% for the use of or the right to use any patent, trademark, design or model, plan, secret formula or process, otherwise 0% (1988 treaty - 0%)

Double Taxation Relief

Iceland generally applies the credit method for the elimination of double taxation, while Switzerland generally applies the exemption method. However, in the case of Dividend or Royalty income, Switzerland may apply the credit method if requested by the taxpayer

Limitation on Benefits

A protocol to the treaty includes a limitation on benefits provision whereby the benefits of the treaty articles on dividends, interest, royalties, and other income will not apply for income paid under a transaction or derived by an entity if the main purpose of the transaction or establishment of the entity was to obtain the benefits of the treaty.

Entry into Force and Effect

The treaty will enter into force once the ratification instruments are exchanged, and will generally apply from 1 January of the year following its entry into force.

Once in force, the new treaty will replace the 1988 income and capital tax treaty between the two countries, which currently applies. However, the 1988 treaty will continue to apply for tax years and periods that have ended before the new treaty applies.

Powerful Tax Tools


FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.


Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.


Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.


Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.


Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.



Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.


Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.


Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.


Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.


Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.


Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.


Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.


VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.


NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.


Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.


Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Translate Documents

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More