Iceland’s Ministry of Finance and Economic Affairs has announced plans to introduce an amendment during the autumn parliamentary session on 28 August 2024 proposing a minimum tax rate of 15% for multinational enterprises (MNEs) with annual revenues exceeding EUR 750 million, aligning with the OECD Inclusive Framework and the EU Directive 2022/2523.

The ministry has launched a public consultation, on 28 August 2024, concerning the amendment. The consultation is set to conclude on 11 September 2024.

Since Iceland is part of the internal market through the EEA Agreement, the amendment will align with the EU Directive. If Iceland fails to integrate specific rules into its law, other countries might tax Icelandic companies below a 15% effective rate. However, with Iceland’s corporate tax rate at 20% (21% in 2024), this issue should only occur if companies receive tax incentives.