Iceland vs Japan
Corporate Tax Comparison
Time of Update: Iceland: 4/04/2026 / Japan: 4/03/2026
Compare Iceland and Japan corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Iceland vs Japan Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Iceland
Japan
General CIT Rate:
20 (for LLCs and limited partnerships); 37.6 (for other entities)
General CIT Rate:
23.2
CIT Return Due Date:
31 May
CIT Return Due Date:
Within two months after the end of the company's fiscal year.
CIT Payment Due Date:
November 1st and December 1st
CIT Payment Due Date:
Within two months after the end of the company's fiscal year.
CIT Estimated Payment Due Date:
Except for January and October, prepayments should be made on the first day of each month.
CIT Estimated Payment Due Date:
Within two months after the end of the sixth month of the company's accounting period.
Withholding Tax (WHT)
Iceland
Japan
Resident Withholding Tax (Dividend/Interest/Royalty):
22/22/0
Resident Withholding Tax (Dividend/Interest/Royalty):
20/20/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
21/13/22
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/20/20
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Iceland
Japan
General Capital Gain Tax Rate:
20 (for corporations, same as CIT rate for LLCs); 22 (for individuals)
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate.
Effective Tax Rate (ETR)
Iceland
Japan
Composite Effective Average Tax Rate:
18.79%
Composite Effective Average Tax Rate:
28.36
Composite Effective Marginal Tax Rate:
14.93%
Composite Effective Marginal Tax Rate:
29.26
