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Iceland: Budget 2026 proposes implementation of Pillar Two global minimum tax rules

Implementing Pillar Two global minimum tax as part of the 2026 budget

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December 17, 2025

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

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