Iceland: Parliament approves a bill to implement tax measures under 2021 budget
On 1 October 2020, the Icelandic Parliament approved a Bill No.5 in order to implement tax measures under the 2021 budget. The bill includes the following measures; Taxes on carbon, alcohol and tobacco, oil, and car tax increased by
See MoreIceland: Parliament passes a bill to amend various taxes
On 6 May 2020, the Icelandic Parliament passed a Bill No.1329 amending income, withholding, excise, and VAT laws. The bill includes the amendments for corporate taxpayers in relation to the ISK 100 million safe harbor threshold for Iceland's
See MoreCOVID-19: Iceland passes additional tax relief measures
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
See MoreCOVID-19: Icelandic parliament passes legislation providing postponement of tax payments
On 13 March 2020, the parliament of Iceland has passed a legislation that provides for the postponement of tax payments. Legal entities are permitted to postpone the payment of half of the social security tax, that was originally due on 16 March
See MoreIceland: The Ministry of Finance and Economy presents a draft law on TPD penalties to Parliament
On 18 February 2020, the Ministry of Finance and Economy submitted a draft bill to the parliament regarding new penalties for failing to comply with transfer pricing documentation requirements. The draft law also includes an amendment to clarify
See MoreIceland: MLI enters into force
On 1 January 2020, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force for Iceland. On 26 September 2019, Iceland deposited its instrument of ratification for
See MoreAmending protocol to the Nordic tax treaty enters into force
On 28 November 2019, the amending protocol to the Nordic tax treaty (Denmark, the Faroe Islands, Finland, Iceland, Norway, and Sweden) was entered into force in respect of Norway and applies from 1 January
See MoreIceland: Government announces fiscal budget proposal for 2020
On 6 September 2019, Mr. Bjarni Benediktsson, the honorable Minister of Finance and Economic Affairs of Iceland introduced the fiscal budget proposal for 2020 that would be presented before Parliament on Tuesday 10 September 2019. Among the salient
See MoreIceland: MOF Seeks Comments on draft CbC reporting regulations
On 12 July 2019, the Ministry of Finance and Economic Affairs has opened a public consultation on draft CbC reporting regulations. The draft regulation includes the measures outlining the income, taxes, and economic activities of multinational
See MoreIceland: Parliament adopts increased withholding tax rates for 2018
The parliament has approved the Budget for 2018 and it has implemented an overall increase in withholding tax rates effective 1 January 2018 as follows: the standard rate of withholding tax on Icelandic interest, capital gains and dividend income
See MoreJapan: DTA with Iceland signed
On 15 January 2018, the Japanese Ministry of Finance issued a press release announcing that the Government of Japan and the Government of the Republic of Iceland signed the Convention between Japan and Iceland for the Elimination of Double Taxation
See MoreIceland: Parliament approves budget for 2018
On 29th December 2017, The Icelandic Parliament has approved a number of tax changes under the 2018 budget. The budget increase tax on investment income, environmental and sin taxes, and it also extended the value-added tax break on supplies of
See MoreIceland: National Budget proposal for 2018
Iceland's Ministry of Finance and Economic Affairs published an overview of the budget proposals for 2018 on 14th December 2017. The main tax changes in 2018 included in the fiscal budget proposal are as follows: The capital gain tax rate will
See MoreIceland: Parliament passes legislation amending to interest deduction
The parliament has passed legislation amending article 57(b) of the Income Tax Act No. 90/2003 on 1st June 2017. According to the previous article 57 (b) of the Income Tax Law No 90 /, which entered into force on 1 January 2017, the taxpayer’s
See MoreU.S. and Iceland sign an agreement on the exchange of CbC reports
According to the IRS announcement on its website, the competent authorities of the U.S. and Iceland have concluded an arrangement on the exchange of Country-by-Country Reports. The competent authority arrangement (CAA) for exchange of
See MoreIceland signs new multilateral convention to prevent tax avoidance
Iceland has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("Multilateral Instrument" or "MLI"). On 7 June 2017, over 70 Ministers and other high-level representatives
See MoreJapan and Iceland agree on a DTA
On 29 May 2017, the Japanese Ministry of Finance announced that the Government of Japan and the Government of Iceland have agreed in principle on the tax convention between Japan and Iceland. This new agreement will be signed after the necessary
See MoreIceland issues revised bill for the CbCR
Regulation no. 1166/2016 on the documentation for CbCR (Country-by-Country Reporting) has been further revised by regulation no. 245/2017 on 24 March 2017. The revised regulation is effective on or after 24 March 2017. The revision incorporates two
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