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Economy and Banking Sector of Iceland

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Iceland: 36 Signed Agreements

Iceland signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Barbados
 Belgium
 Canada
 China
 Croatia
 Czech Republic
 Estonia
 France
 Germany
 Greece
 Hungary
 India
 Ireland
 Italy
 Korea, Republic of
 Latvia
 Lithuania
 Luxembourg
 Malta
 Mexico
 Netherlands
 Norway
 Poland
 Portugal
 Romania
 Russian Federation
 Slovakia
 Slovenia
 Spain
 Switzerland
 Ukraine
 United Kingdom
 United States
 Vietnam

There are also several agreements between Iceland and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):

 Malta (Apr 2013)
 United Kingdom (Dec 2013)

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 48 Signed Agreements

Iceland signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Andorra
 Aruba
 Bahamas
 Bahrain
 Belize
 Bermuda
 British Virgin Islands
 Cayman Islands
 Cook Islands
 Curacao
 Denmark
 Dominica
 Faroe Islands
 Finland
 Gibraltar
 Greenland
 Guernsey
 Isle of Man
 Jersey
 Liberia
 Liechtenstein
 Macau
 Monaco
 Montserrat
 Panama (Dec 2013)
 Saint Lucia
 Samoa
 San Marino
 Sint Maarten (Dutch part)
 Sweden
 Turks and Caicos Islands
 Uruguay

There are also several agreements between Iceland and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):

 Anguilla
 Antigua and Barbuda
 Botswana (Feb 2013)
 Brunei Darussalam
 Costa Rica
 Grenada
 Guatemala
 Jamaica
 Marshall Islands
 Mauritius
 Niue (Oct 2013)
 Qatar (Sep 2013)
 Saint Kitts and Nevis
 Saint Vincent and The Grenadines
 Seychelles
 Vanuatu

Automatic Exchange: Starts in September 2017

Iceland signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 54 Bilateral Agreements to Receive Information

Iceland has signed bilateral agreements with 54 jurisdictions to automatically receive information:

 Argentina
 Australia
 Austria
 Belgium
 Brazil
 Bulgaria
 Canada
 China
 Colombia
 Croatia
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 India
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Netherlands
 New Zealand
 Norway
 Poland
 Portugal
 San Marino
 Seychelles
 Singapore
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 Switzerland
 United Kingdom
 Uruguay

Automatic Excnange: 68 Bilateral Agreements to Send Information

Iceland has signed bilateral agreements with 68 jurisdictions to automatically send information:

 Anguilla
 Argentina
 Australia
 Austria
 Belgium
 Belize
 Bermuda
 Brazil
 British Virgin Islands
 Bulgaria
 Canada
 Cayman Islands
 China
 Colombia
 Costa Rica
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 India
 Indonesia
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Montserrat
 Netherlands
 New Zealand
 Norway
 Poland
 Portugal
 Romania
 Saint Lucia
 Saint Vincent and The Grenadines
 Samoa
 San Marino
 Seychelles
 Singapore
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 Switzerland
 Turks and Caicos Islands
 United Kingdom
 Uruguay

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Iceland
IGA in effect since 26 May 2015, Model 1

Iceland has FATCA agreement with the U.S. in effect since 26 May 2015 (Intergovernmental Agreement Model 1). Financial institutions operating in Iceland are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Icelandic financial accounts hold in U.S. financial institutions will be reported to Icelandic authorities.

Further Information