Iceland: Budget 2026 proposes implementation of Pillar Two global minimum tax rules
Implementing Pillar Two global minimum tax as part of the 2026 budget
The Minister of Finance and Economic Affairs in early September 2025 presented the 2026 budget, proposing the implementation of the 15% global minimum corporate tax under Pillar Two in accordance with the OECD’s global anti-base erosion (GloBE) model rules.
The proposal involves the income inclusion rule (IIR) and a qualified domestic minimum top-up tax (QDMTT) applicable to entities within a consolidated group.
For more information, contact a KPMG tax professional in Iceland:
Ágúst K Guðmundsson | akgudmundsson@kpmg.is