Skattalagningu

Skattalagningu refers to the process of taxation in Iceland. It encompasses the system of laws, regulations, and administrative procedures that govern how taxes are levied, collected, and administered within the country. The primary authority responsible for tax collection and administration in Iceland is the Directorate of Internal Revenue (Ríkisskattstjóri).

Icelandic taxation includes a variety of taxes, such as income tax, value-added tax (VTS), corporate tax, property tax, and various excise duties. Income tax is progressive, meaning higher earners pay a larger percentage of their income in taxes. Value-added tax is a consumption tax applied to most goods and services. Corporate tax is levied on the profits of companies.

The tax system in Iceland is designed to fund public services, including healthcare, education, infrastructure, and social welfare programs. Residents and businesses operating in Iceland are subject to these tax obligations. The Directorate of Internal Revenue oversees tax filings, audits, and ensures compliance with tax laws. Changes to tax legislation are typically debated and enacted by the Icelandic Parliament (Alþingi). The overall aim of the skattalagningu system is to provide revenue for the state while aiming for a fair distribution of the tax burden.