Skattgreiðslur

Skattgreiðslur, literally tax payments in Icelandic, refer to mandatory contributions to the public treasury collected by government authorities to fund public services such as education, healthcare, and infrastructure. They cover taxes on income and profits, consumption, property, and other bases, and can be levied at national and municipal levels.

Who pays: Individuals pay income and social security taxes on earnings; businesses pay corporate income tax, payroll taxes, and value-added tax (VAT) on sales. In many cases, payroll withholdings collect a portion of income tax at source, while self-employed individuals or entities make periodic estimated payments or file annual tax returns.

Administration and procedure: In Iceland, Skatturinn is the tax authority responsible for assessment, collection, and enforcement. The system relies on self-assessment and annual tax returns, with preliminary payments based on prior-year income. Taxpayers must report income, deductions, and credits by deadlines; late or underpaid amounts accrue interest and penalties.

Payment methods and compliance: Taxes are paid electronically through the banking system or government portals. Compliance involves keeping records, invoices, and receipts, and complying with audit requests. Non-compliance can trigger penalties, interest, or enforcement measures.

Overview: Skattgreiðslur play a central role in funding government functions, and the Icelandic tax system emphasizes self-assessment, transparency, and timely remittance to maintain public revenue and welfare programs.