- Overview: Iceland
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Iceland
Getting your business up-and-running in Iceland can be challenging, especially if you do not speak the native language. Establishing your own business entity in Iceland is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Iceland, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Iceland, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in Iceland
Navigating the Icelandic legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Icelandic speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Iceland without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Iceland. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Iceland
Corporate income tax (CIT). Resident individuals are fully liable for tax payments in Iceland on their worldwide income.
Non-resident individuals staying temporarily in Iceland, who derive income from employment during their stay, are subject to national income tax on such income. They are also subject to municipal income tax in the same manner as residents. Other non-resident individuals are subject to national income tax and municipal income tax on their income from Iceland. Non-residents are allowed the same deductions for expenses as residents.
Corporate Income Tax (CIT). Resident corporations pay tax on their worldwide income less operating expenses. Deductible operating expenses are comprised of all the expenses and costs needed to provide, insure, and maintain income.
Non-resident corporations receiving payments for services or business operations carried out in Iceland, as well as corporations operating a permanent establishment (PE) in Iceland or receiving a profit from such establishments, are subject to CIT for their Icelandic income at the same rate as applies to resident corporations.
Payroll Cycle in Iceland
Collective agreements usually state that wages are to be paid monthly on the first day after the month ends for which the wages is being paid and employees must be given a payslip with full itemized details of payment and deductions. Wages are in some sectors paid on a weekly or bi-weekly basis.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Iceland
Compensating your local and expat workforce in Iceland and closely adhering to Icelandic taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Icelandic labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Iceland by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Iceland laws. To get the latest updates on taxation in Iceland and in 190 countries worldwide, contact Acumen’s team of global employment experts.