According to an announcement by Iceland's Ministry of Finance, the new income and capital tax treaty between Iceland and the United Kingdom entered into force on 10 November 2014. The treaty, signed 17 December 2013, replaces the 1991 tax treaty between the two countries. Taxes Covered The treaty covers Icelandic state and municipal income taxes, and the financial activities tax. It covers U.K. income tax, corporation tax and capital gains tax. Residence If a company is resident in both Contracting States, the competent authorities will determine the company's residence for the purpose of the treaty through mutual agreement. If the...