On 16 July 2014, the U.K. ratified the pending income and capital tax treaty with Iceland.  The treaty was signed 17 December 2013, and once in force and effective, will replace the 1991 tax treaty between the two countries. Taxes Covered The treaty covers U.K. income tax, corporation tax and capital gains tax, and covers Iceland state and municipal income taxes, and the financial activities 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 authorities cannot reach mutual agreement, the...