Corporate Tax Comparison

Israel vs Iceland

Compare Israel 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 — Israel: 4/04/2026 · Iceland: 4/04/2026

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Compare Corporate Tax

Israel

Iceland

Basic Corporate Tax Comparison

PwC World Tax Summary OECD Statistics

Time of Update — Israel: 4/04/2026 · Iceland: 4/04/2026

Corporate Income Tax (CIT)

Israel

Iceland

General CIT Rate:

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

CIT Return Due Date:

Within five months after the end of the tax year.

CIT Return Due Date:

31 May

CIT Payment Due Date:

If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.

CIT Payment Due Date:

November 1st and December 1st

CIT Estimated Payment Due Date:

Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.

CIT Estimated Payment Due Date:

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

Withholding Tax (WHT)

Israel

Iceland

Resident Withholding Tax (Dividend/Interest/Royalty):

25/25/25

Resident Withholding Tax (Dividend/Interest/Royalty):

22/22/0

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

25/0-25/25

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

21/13/22

Value-Added Tax (VAT)

Israel

Iceland

General VAT Rate:

Learn More

Value-Added Tax (VAT)

General VAT Rate:

Learn More

Value-Added Tax (VAT)

Capital Gain Tax (CGT)

Israel

Iceland

General Capital Gain Tax Rate:

Capital gains are constrained by the normal corporate income tax rate.

General Capital Gain Tax Rate:

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

Effective Tax Rate (ETR)

Israel

Iceland

Composite Effective Average Tax Rate:

21.47%

Composite Effective Average Tax Rate:

18.79%

Composite Effective Marginal Tax Rate:

16.63%

Composite Effective Marginal Tax Rate:

14.93%

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