The Austrian National Council approved the Austria – Iceland Income and Capital Tax Treaty (2016) on 15 December 2016 for the avoidance of double taxation. The treaty generally follows the OECD Model.
According to the new treaty the maximum rates of withholding tax are:
–15% on dividends in general; 5% if the beneficial owner is a company (other than a partnership) which holds directly at least 10% of the capital of the company paying the dividends;
–0% of interest; and
–5% on royalties.
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