The US Treasury Department has announced that the income tax treaty and protocol between theUInited States and Iceland signed on 23 October 2007, entered into force on 15 December 2008. The new treaty and protocol will have effect with respect to taxes withheld at source for amounts paid or credited on or after 1 January 2009. From 1 January 2009, the new treaty generally replaces the US-Iceland income and capital tax treaty of 7 May 1975.