Gjaldtæk

Gjaldtæk is an Icelandic word that translates to "taxable" or "subject to tax" in English. It is used in a financial and legal context to describe individuals, companies, or assets that are liable to pay taxes. The term is fundamental to the Icelandic tax system and determines the scope of tax obligations.

When an individual's income or a company's profits are considered gjaldtæk, it means they must report these earnings to the Icelandic tax authorities, Skatturinn, and pay the corresponding taxes. This applies to various forms of income, including wages, business revenue, capital gains, and rental income. Similarly, certain assets, such as property, may also be classified as gjaldtæk for the purpose of property taxes or other levies.

The determination of whether something is gjaldtæk often depends on factors like residency, the source of income or assets, and specific tax laws enacted by the Icelandic government. Understanding the concept of gjaldtæk is crucial for anyone conducting financial activities or owning assets within Iceland to ensure compliance with tax regulations. It forms the basis for tax assessment and collection, playing a vital role in public finance.