Double Taxation Agreement Iceland

Iceland is a signatory to the competent authority`s agreement on the establishment of relations between different countries (CBC), as stated in Action Report 13 „Transfer of Documentation and Country Report“. Iceland has also signed a CAA on CBC with the United States. Iceland will begin exchanging cbC reports in September 2018. Double taxation agreements (DBAs) are contracts between two or more countries to avoid international double taxation between income and wealth. The main objective of the DBA is to distribute the right of taxation among the contracting countries, to avoid differences, to guarantee equal rights and security of taxpayers and to prevent tax evasion. The provisions of this paragraph do not affect the taxation of the corporation with respect to the profits on which the dividends are paid. 1. In Iceland, double taxation is eliminated as follows: www.oecd.org/tax/treaties/ www.oecd.org/ctp/beps-actions.htm www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-beps.htm information on double taxation agreements on the website of the Directorate of Domestic Revenues 3. The agreement between the Republic of Iceland and the Grand Duchy of Luxembourg, signed in Luxembourg on 29 April 1975, to avoid double taxation of airline revenues and capital ends and takes effect from the date on which this convention takes effect for the taxes to which this convention applies under paragraph 2 of this article. 4. The competent authorities of the contracting states may communicate directly with each other in order to reach an agreement in accordance with the preceding paragraphs.

Where it is desirable to reach agreement on an oral exchange of views, such an exchange of views may take place through a commission made up of representatives of the competent authorities of the contracting states. 2. The competent authority endeavours to resolve the matter by mutual agreement with the competent authority of the other State party, by mutual agreement, where the objection appears to be well founded and is not in a position to find a satisfactory solution to resolve the matter in agreement with the competent authority of the other contracting State, in order to avoid tax evasion that is not in accordance with the convention. Any agreement reached will be implemented in the domestic law of the States Parties, regardless of the time frame. 1. Nationals of a contracting state must not be subject to a different or heavier taxation or requirement in the other contracting state than the imposition and related requirements to which nationals of that other state are or may be subject in the same circumstances, including the place of residence. Notwithstanding Article 1, this provision also applies to persons who do not reside in one or both contracting states.