Skattaafslætti

Skattaafslætti refers to tax reliefs or deductions available in Iceland. These are provisions within the Icelandic tax system that allow individuals and businesses to reduce their taxable income or their final tax liability. The purpose of skattaafslætti is often to encourage certain behaviors, support specific groups, or address particular economic conditions.

There are various types of skattaafslætti in Iceland, each with its own eligibility criteria and limitations. For individuals, common examples include deductions for mortgage interest, contributions to pension funds, and certain expenses related to education or healthcare. For businesses, tax reliefs might be designed to incentivize investment in research and development, job creation, or the adoption of new technologies.

The specific rules and amounts for skattaafslætti are determined by Icelandic tax legislation and can be subject to change. Taxpayers are generally required to meet certain conditions and provide documentation to claim these reliefs. It is advisable for individuals and businesses to consult official tax guidelines or seek professional advice to understand the skattaafslætti applicable to their situation and to ensure compliance with tax laws. The Directorate of Tax Investigation (Ríkisskattstjóri) is the primary authority responsible for administering and overseeing the tax system, including the application of tax reliefs.