Iceland vs Italy
Corporate Tax Comparison
Time of Update: Iceland: 4/04/2026 / Italy: 4/05/2026
Compare Iceland and Italy corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Iceland vs Italy Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Iceland
Italy
General CIT Rate:
20 (for LLCs and limited partnerships); 37.6 (for other entities)
General CIT Rate:
24
CIT Return Due Date:
31 May
CIT Return Due Date:
By the end of the 9th month after the end of the tax year.
CIT Payment Due Date:
November 1st and December 1st
CIT Payment Due Date:
The last day of the sixth month after the end of the tax year.
CIT Estimated Payment Due Date:
Except for January and October, prepayments should be made on the first day of each month.
CIT Estimated Payment Due Date:
Advance payment: 1) Pay 40% on the last day of the sixth month after the end of the tax year, 2) Pay 60% at the end of the eleventh month after the end of the tax year.
Withholding Tax (WHT)
Iceland
Italy
Resident Withholding Tax (Dividend/Interest/Royalty):
22/22/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
21/13/22
None-Resident Withholding Tax (Dividend/Interest/Royalty):
26/26/30
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Iceland
Italy
General Capital Gain Tax Rate:
20 (for corporations, same as CIT rate for LLCs); 22 (for individuals)
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate. For financial investments, as long as they meet the conditions stipulated by law, they can be eligible for a 95% exemption under the PEX system.
Effective Tax Rate (ETR)
Iceland
Italy
Composite Effective Average Tax Rate:
18.79%
Composite Effective Average Tax Rate:
21.18%
Composite Effective Marginal Tax Rate:
14.93%
Composite Effective Marginal Tax Rate:
-22.74%
