The Parliament has recently passed three major amendments to the Income Tax Act, which entail (i) the abolition of tax on capital gains from the sale of shares, (ii) a reduction of the corporate income tax rate, and (iii) a reduction of the dividend withholding tax rate on dividends paid to non-resident companies. The amendments, which are expected to further establish Iceland as a prime location for international business, are applicable from income year 2008.
Abolition of tax on share …