Category Taxation in Iceland

Iceland Eyeing Tourist Taxes to Keep Tourists Away

March 21, 2017 Taxation in Iceland

Tourist Taxes in IcelandREYKJAVIK – Visiting Iceland may soon become more expensive, thanks to Game of Thrones.

In a recent interview the Minister of Tourism of Iceland Thordis Kolbrun Reykfjord Gylfadottir said that the government may soon look at implementing taxes on tourists or tourism businesses.

The tax is aimed at controlling the number of tourists coming to the country, while also raising tax revenues.

Iceland is seeing a surge in tourism in recent years, as in 2010 the country had approximately 459 000 international visitors, while it is estimated that by 2020 the level will rise to as much as 2 million people per year.

The spike in tourist numbers has been attributed to a devaluation of the national currency and a growing interest in the country due to appearances in several popular television shows, ...

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Iceland Enacts 39 Percent Exit Tax

June 9, 2015 Taxation in Iceland

REYKJAVIK – Iceland is giving failed banks the option of paying a massive stability tax or meeting a set of payment requirements before being allowed to transfer funds overseas.

On June 8th the government of Iceland revealed a set of new proposed measures aimed at loosing capital controls in the country, while at the same time implementing new tax measures to make sure that there is not an exodus of capital.

Currently an estimated ISK 1 200 worth of assets are under strict capitals controls, following a mass flood of inward investment after the collapse of the country’s three major banks in 2008.

Under the new regulations, the estates of the failed banks are required to fulfil a set of conditions, which if not met will require the institution to pay a once-off tax of 39 percent on thei...

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Tax Changes in New Budget for Iceland

October 3, 2013 Taxation In EuropeTaxation in Iceland

Tax Collections in the USAREYKJAVIK – Tax changes in Iceland will help the country balance its budget, and will lead to the first budgetary surplus since 2008.

On October 2nd the Finance Minister of Iceland Bjarni Benediktsson unveiled in parliament the government’s budget plan for 2014, detailing tax changes intended to stabilize the national budget, while improving the standard of living and increasing real wages in the country.

One of the the key points in the coming budget was a gradual decrease by 0.34 percent over the course of the next three years the rate of payroll tax, lowering taxpayers’ burdens by ISK 3.8 billion over the time period.

In an effort to further increase the spending power of low- and medium-income earners, the government will raise the tax-free threshold on earnings from interest payments ...

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OECD and COE to Amend International Tax Treaty

April 7, 2010 International Tax CooperationOffshore BankingOffshore TaxationTaxation in BelgiumTaxation in FranceTaxation in IcelandTaxation in ItalyTaxation in NetherlandsTaxation in NorwayTaxation in SweedenTaxation in UKTaxation in USA

Council of Europe - 60 years oldAn agreement has been reached by the Organization for Economic Cooperation and Development (OECD) and the Council of Europe to amend the Convention on Mutual Administrative Assistance in Tax Matters (CMAAT).

On April 6th the OECD and Council of Europe released a media statement announcing that the CMAAT will be updated in order to bring it up to currently agreed upon standards of international tax transparency. The Convention, opened for signing in 1988, is an international framework which provides facilitation of multinational exchange of fiscal information. The Convention will be updated to reflect modern internationally agreed upon standards in tax transparency and exchange of fiscal information...

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EFTA State Aid Report Released

December 21, 2009 International Tax CooperationTaxation in EUTaxation in IcelandTaxation in LiechtensteinTaxation in Switzerland

EFTA Minesterial MeetingOn December 18th, 2009, the European Free Trade Association (EFTA) released the fourth report covering state aid granted in Iceland, Lichtenstein and Norway, for the period between 2004 to the end of the 2008 year. The paper was prepared in co-operation with European Commission and includes comparisons with countries of the EU.

A total of €2,234.88 million was granted in state aid across the three surveyed countries in 2008, indicating an overall increase in grants across the countries. 98.9 percent of this amount was accounted for by aid granted by the Norwegian government.

The report shows that the primary contributions to the 2008 state aid increase were Norway’s tax relief schemes to the maritime sector and compensation to Norwegian farmers for pollution reductions...

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