Iceland TIN number guide
Icelandic Identification Number (kennitala)
Kennitala is a unique number issued to both individuals and entities. 'Register Iceland' is responsible for issuing identification numbers for individuals, while 'Fyrirtækjaskrá' issues identification numbers for entities. These Tax Identification Numbers (TINs) play a crucial role in all tax-related matters in Iceland.
Format
The Tax Identification Number (TIN) consists of ten digits, with the initial six representing an individual's date of birth (DDMMYY). The seventh and eighth digits are random, the ninth is a check digit, and the tenth indicates the century of birth. The TIN is commonly displayed with a hyphen after the sixth digit (e.g., xxxxxx-xxxx).
The TIN structure, D1D2M1M2Y1Y2R1R2CM, signifies day (D), month (M), year (Y), random (R), checksum (C), and millennium (M).
Check digit equations: C = 11 - ((3xD1 + 2xD2 + 7xM1 + 6xM2 + 5xY1 + 4xY2 + 3xR1 + 2xR2) mod 11)
For entities, the same formula is applied. Instead of the date of birth, the initial registration date is used, and the first digit has 4 added to avoid conflicts with individuals.
Official Database Kennitala Search
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Frequently Asked Questions
Can a foreign national get a kennitala without having a registered address in Iceland first?
This is a genuine catch-22 for new arrivals. A kennitala for individuals requires legal domicile registration at a confirmed physical address in Iceland, yet landlords and banks often demand a kennitala before signing a lease or opening an account. The practical workaround is the system ID number (utangarðskennitala): a temporary identifier issued to workers staying 3–6 months that looks identical to a kennitala but carries no rights (no health insurance, no social benefits). It does allow you to open a bank account while you secure housing. EEA/EFTA citizens apply in person at Registers Iceland (Þjóðskrá); non-EEA citizens must have their employer or a sponsoring organisation submit the kennitala application on their behalf once a permanent address is confirmed. [1] [2]
Why does my kennitala validator reject a number that Skatturinn accepts as valid?
The most common cause is a misimplemented modulo-11 check digit. The correct formula is: C = 11 − ((3×D1 + 2×D2 + 7×M1 + 6×M2 + 5×Y1 + 4×Y2 + 3×R1 + 2×R2) mod 11). Two edge cases break naive implementations: (1) when the inner modulo equals 0, the check digit is 0 — not 11; (2) when the inner modulo equals 1, the result would be 10, a two-digit value that cannot occupy a single position — the Icelandic registry simply skips that digit combination and reassigns new random digits (R1, R2) until a valid single-digit checksum is produced. A validator that returns "invalid" for a remainder-0 number (treating it as 11) or crashes on a remainder-1 edge case is using a broken algorithm. The authoritative algorithm is published by the OECD in Iceland's TIN information sheet. [3]
When must a foreign company register for VAT in Iceland, and is a local fiscal representative mandatory?
Any business — domestic or foreign — that sells taxable goods or services in Iceland must register for VAT once 12-month turnover exceeds ISK 2,000,000. Upon crossing the threshold, registration is required within 8 days. Foreign companies without a permanent establishment in Iceland face an additional obligation: they must appoint an Iceland-resident fiscal representative who takes joint legal responsibility for VAT filings and remittances. For companies supplying purely digital/electronic services B2C (e.g. SaaS, streaming, apps), Skatturinn offers a simplified VOES registration that does not require a fiscal representative, but it is available only for electronic services — physical goods or on-site services still require the full registration with a local agent. The VAT registration form is RSK 5.02. [4] [5]
What does a foreign company need to register an Icelandic branch and get its kennitala?
A foreign branch is registered directly with Skatturinn's company register (Fyrirtækjaskrá) and receives its own kennitala upon approval. Required documents include: a company certificate for the parent (issued within 3 months of application), the parent's latest annual accounts, the articles of association, a mandate and power of attorney for the branch manager, and a beneficial-owner notification (form RSK 17.27). Critically, if the appointed branch manager does not already hold an Icelandic kennitala, an application for a system ID number and a passport copy must be submitted alongside the other documents — there is no workaround. All documents must be in Icelandic, English, Danish, Swedish, or Norwegian (or translated into one of those languages). Registration costs ISK 256,000 and typically takes 10–12 business days. [6]
What withholding tax applies when an Icelandic company pays dividends or royalties to a non-resident, and how is treaty relief claimed?
Iceland withholds 20% on dividends paid to non-resident companies (the rate was temporarily 21% for 2024) and 22% on dividends paid to non-resident individuals. Royalties to non-residents are taxed at 22%. Interest paid to non-residents is withheld at 10%. Two relief routes exist: (1) EEA-resident companies that received dividends after 1 June 2008 can claim a full refund of withholding tax, regardless of any treaty; (2) treaty-country residents can apply for a reduced or zero rate in advance using form RSK 5.42 (Application under Double Taxation Conventions for Exemption), or claim a refund of over-withheld tax using form RSK 5.43 after the fact. Both forms require certification from the home-country tax authority confirming tax residency. Without submitting RSK 5.42 before payment is made, the payer is obliged to withhold at the full domestic rate. [7] [8]
