On 30 March 2020, the Icelandic parliament passed further two different legislative acts as relief measures in response to the COVID-19 pandemic. Accordingly, employers could have the right to postpone payment deadlines for social security tax and withheld public levies at source that fall due between 1 April – 1 December 2020. The payment deadline for all postponed payments will be 15 January 2021. The payment deadline for payments previously postponed from 1 March 2020 to 1 April 2020, will be postponed even further till 15 January 2021.
For VAT compliance, tax authorities will not impose penalties if VAT payments are not made before the deadline on 6 April 2020, for the reporting period of January and February 2020.
