The consultation ends on 13 October 2025.
The Icelandic Minister of Finance and Economic Affairs launched a public consultation on proposed amendments to Law No. 152/2009, which governs tax credit support for innovative companies.
The amendments aim to strengthen the legislative and regulatory framework for supporting innovation companies, focusing on the implementation, structure, and conditions of the support system. The goal is to provide more targeted assistance, in line with recommendations from the OECD and the IMF.
Key areas of the proposal include clarifying which expenses qualify as verifiable research and development (R&D) costs, rules on domestic and foreign ownership, and ownership of intellectual property rights. It also addresses transactions between related parties and the rules applicable to companies in financial distress. Additionally, the proposal takes into account EEA state aid rules for innovation companies under the GBER exemption regulation.
The review of the law will be conducted in stages, with this phase concentrating on enhancing the framework governing support, particularly regarding R&D expenses and asset and intellectual property ownership.
The deadline to submit comments is 13 October 2025.
