Panama vs Iceland
Corporate Tax Comparison
Time of Update: Panama: 4/04/2026 / Iceland: 4/04/2026
Compare Panama and Iceland corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Panama vs Iceland Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Panama
Iceland
General CIT Rate:
25
General CIT Rate:
20 (for LLCs and limited partnerships); 37.6 (for other entities)
CIT Return Due Date:
Three months after the end of the fiscal year.
CIT Return Due Date:
31 May
CIT Payment Due Date:
Tax payments must be made within three months after the end of the respective accounting period.
CIT Payment Due Date:
November 1st and December 1st
CIT Estimated Payment Due Date:
6 months, 9 months, and 12 months after the end of the tax year.
CIT Estimated Payment Due Date:
Except for January and October, prepayments should be made on the first day of each month.
Withholding Tax (WHT)
Panama
Iceland
Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/NA/NA
Resident Withholding Tax (Dividend/Interest/Royalty):
22/22/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
5, 10 - 20/12.5/12.5
None-Resident Withholding Tax (Dividend/Interest/Royalty):
21/13/22
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Panama
Iceland
General Capital Gain Tax Rate:
Return on investment sees Panama Company tax summary.
General Capital Gain Tax Rate:
20 (for corporations, same as CIT rate for LLCs); 22 (for individuals)
Effective Tax Rate (ETR)
Panama
Iceland
Composite Effective Average Tax Rate:
23.33%
Composite Effective Average Tax Rate:
18.79%
Composite Effective Marginal Tax Rate:
18.47%
Composite Effective Marginal Tax Rate:
14.93%
