Iceland vs Denmark
Corporate Tax Comparison
Time of Update: Iceland: 4/04/2026 / Denmark: 4/05/2026
Compare Iceland and Denmark corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Iceland vs Denmark Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Iceland
Denmark
General CIT Rate:
20 (for LLCs and limited partnerships); 37.6 (for other entities)
General CIT Rate:
22
CIT Return Due Date:
31 May
CIT Return Due Date:
In general, six months after the end of the fiscal year.
CIT Payment Due Date:
November 1st and December 1st
CIT Payment Due Date:
Income for the next fiscal year was received on November 20th.
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:
Two equal installments were made on March 20 and November 20. Additionally, extra taxes can be paid before February 1 of the following year of the income year.
Withholding Tax (WHT)
Iceland
Denmark
Resident Withholding Tax (Dividend/Interest/Royalty):
22/22/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0/27/22
None-Resident Withholding Tax (Dividend/Interest/Royalty):
21/13/22
None-Resident Withholding Tax (Dividend/Interest/Royalty):
27/27/22
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Iceland
Denmark
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 constrained by the normal corporate income tax rate.
Effective Tax Rate (ETR)
Iceland
Denmark
Composite Effective Average Tax Rate:
18.79%
Composite Effective Average Tax Rate:
20.36%
Composite Effective Marginal Tax Rate:
14.93%
Composite Effective Marginal Tax Rate:
14.22%
