Corporate Tax Comparison

Estonia vs Iceland

Compare Estonia and Iceland corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.

Time of Update — Estonia: 4/05/2026 · Iceland: 4/04/2026

Base Country/Region

Compare Country/Region

Compare Corporate Tax

Estonia

Iceland

Basic Corporate Tax Comparison

PwC World Tax Summary OECD Statistics

Time of Update — Estonia: 4/05/2026 · Iceland: 4/04/2026

Corporate Income Tax (CIT)

Estonia

Iceland

General CIT Rate:

Estonia does not tax retained earnings. Distributed profits are taxed at a rate of 20%. A reduced rate of 14% applies to regularly distributed dividends. From 2025, the general rate for distributed profits will increase to 22%.

General CIT Rate:

20 (for LLCs and limited partnerships); 37.6 (for other entities)

CIT Return Due Date:

Corporate income tax is assessed and declared monthly.

CIT Return Due Date:

31 May

CIT Payment Due Date:

CIT on distributed profits is payable upon distribution.

CIT Payment Due Date:

November 1st and December 1st

CIT Estimated Payment Due Date:

Not applicable as tax is only due on distribution.

CIT Estimated Payment Due Date:

Except for January and October, prepayments should be made on the first day of each month.

Withholding Tax (WHT)

Estonia

Iceland

Resident Withholding Tax (Dividend/Interest/Royalty):

0/0/0

Resident Withholding Tax (Dividend/Interest/Royalty):

22/22/0

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

0/0/10

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

21/13/22

Value-Added Tax (VAT)

Estonia

Iceland

General VAT Rate:

Learn More

Value-Added Tax (VAT)

General VAT Rate:

Learn More

Value-Added Tax (VAT)

Capital Gain Tax (CGT)

Estonia

Iceland

General Capital Gain Tax Rate:

Estonia does not have a separate capital gains tax; gains are taxed as regular income at the corporate rate when distributed.

General Capital Gain Tax Rate:

20 (for corporations, same as CIT rate for LLCs); 22 (for individuals)

Effective Tax Rate (ETR)

Estonia

Iceland

Composite Effective Average Tax Rate:

17.0%

Composite Effective Average Tax Rate:

18.79%

Composite Effective Marginal Tax Rate:

0.0%

Composite Effective Marginal Tax Rate:

14.93%

A Full-Service Consulting Firm Backs You Up

TKEG Expat is your trusted overseas business partner. We are the retail consulting department of THE KEITH &EVEN GROUP, a Hong Kong-based global consulting agency with access to 50 markets, covering approximately 72 percent of global GDP.
With its strategic advantages, we can connect customers to opportunities worldwide and serve them in 21 industries.

Learn More About THE KEITH & EVEN GROUP >

A Full-Service Consulting Firm Backs You Up

Corporate Clients

Do You Represent A Big Corporation Or Already Have 10 Million USD In Revenue?

If you represent a big corporation, or if your company already has more than $10 million USD in revenue, you may be interested in the enterprise solutions provided by THE KEITH &EVEN GROUP.

Enterprise Solutions >