Skattskilum

Skattskilum is a term used in Icelandic taxation to refer to the annual settlement of tax obligations between a taxpayer and the tax authority. The word combines skattur (tax) and skil (settlement), and in official usage skattskilum denotes the process or record of settling the tax for a given year. In practice, skattskilum encompasses filing a tax return, the calculation of taxable income, deductions, and credits, and the issuance of a final tax assessment or refund notice by the tax administration (Skatturinn). The outcome determines whether the taxpayer owes additional tax or is entitled to a refund.

The process typically involves the taxpayer submitting required documentation, the tax authority reviewing reported income and deductions, applying applicable rates and allowances, and communicating the final liability. Taxpayers may request corrections or appeal decisions through the established administrative channels.

Skattskilum applies to individuals and organizations with Icelandic tax obligations and covers income from employment, business activities, capital gains, and other taxable sources. While the specifics are governed by national tax law and administrative rules, the concept of skattskilum serves as a central element of how Icelandic tax compliance is concluded for a given year.

See also: Tax return, Tax assessment, Icelandic tax system.