Canada vs Iceland
Corporate Tax Comparison
Time of Update: Canada: 4/04/2026 / Iceland: 4/04/2026
Compare Canada and Iceland corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Canada vs Iceland Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Canada
Iceland
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
General CIT Rate:
20 (for LLCs and limited partnerships); 37.6 (for other entities)
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Return Due Date:
31 May
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Payment Due Date:
November 1st and December 1st
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
CIT Estimated Payment Due Date:
Except for January and October, prepayments should be made on the first day of each month.
Withholding Tax (WHT)
Canada
Iceland
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
Resident Withholding Tax (Dividend/Interest/Royalty):
22/22/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
21/13/22
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Canada
Iceland
General Capital Gain Tax Rate:
Half of the capital gains are considered as taxable capital gains, recorded as company income and taxed at the regular tax rate.
General Capital Gain Tax Rate:
20 (for corporations, same as CIT rate for LLCs); 22 (for individuals)
Effective Tax Rate (ETR)
Canada
Iceland
Composite Effective Average Tax Rate:
23.74
Composite Effective Average Tax Rate:
18.79%
Composite Effective Marginal Tax Rate:
13.74
Composite Effective Marginal Tax Rate:
14.93%
