Iceland is holding a public consultation from 4 June to 5 August 2025 on a proposed bill to implement the Pillar 2 global minimum tax under the GloBE Model Rules.
Iceland’s Ministry of Finance and Economic Affairs has opened a public consultation on a proposed bill to implement the Pillar 2 global minimum tax, aligned with the GloBE Model Rules.
This includes an Income Inclusion Rule (IIR) and a Qualified Domestic Minimum Top-up Tax (QDMTT) for entities in a consolidated group with annual revenue of EUR 750 million or more in at least two of the last four financial years. It also includes various safe harbours. The IIR and QDMTT would apply to financial years starting after 31 December 2025.
The draft bill does not include measures for an Undertaxed Profits Rule (UTPR), but its adoption may be considered later.
The consultation period will be from 4 June to 5 August 2025.
Earlier, Iceland’s government announced plans to implement a 15% minimum tax on multinational corporations with annual revenues over EUR 750 million. This aligns with the OECD Inclusive Framework and EU Directive 2022/2523.
The proposal follows discussions by Iceland’s Ministry of Finance in August 2024.
