Australia: New income tax treaty with Iceland now in force

Withholding tax rates and fringe benefits

Withholding tax rates and fringe benefits

Treasury announced that Australia’s new income tax treaty with Iceland, the first between Australia and Iceland, is now in force.

The treaty’s tax rates will apply from 2024 to:

  • Withholding rates on the relevant Australian income earned from 1 January
  • Fringe benefits provided from 1 April
  • Any other Australian taxes on income earned from 1 July 

In Iceland, all aspects of the treaty will take effect from 1 January 2024.



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