The double tax treaty between Austria and Iceland
entered into force in March 2017. The two countries had no tax treaty until this year and the measure will be beneficial for investments to and from Austria and Iceland. The treaty follows the OECD model, like other double tax treaties concluded by Austria.
Foreign investors from Iceland can obtain more information about these treaties from our lawyers in Austria
The Austria – Iceland DTA
The double tax treaty (DTA) between Iceland and Austria entered into force at the beginning of March 2017. This is the first treaty of this kind between the two jurisdictions and it is meant to encourage foreign investments between the two countries.
The provisions of the treaty cover the taxation measures employed by the two jurisdictions in respect to the income derived by individuals and companies who record profits and/or other type of income in both countries. By allowing for a single point of taxation (where the profits are derived from), companies and individuals benefit from double taxation relief.
The double tax treat
y also establishes a reduction or total exemption from the withholding tax on dividends, interest and royalties. One of our attorneys in Austria
can give you complete details on how these reductions apply and what their values are.
Double tax treaties signed by Austria
Austria has concluded more than 90 double tax treaties
with countries worldwide. These treaties allow for double taxation relief on all types of income, not just profits derived from one of the jurisdictions. These include business profits, pensions, director’s fees, and income from rental or other special types of income. One of our lawyers in Austria
can give you additional information about the information exchange provisions typically included in these agreements.
Austria has also brought changes to other double tax treaties signed with other jurisdictions. Among these, we highlight those signed with Lichtenstein and with Luxembourg.