skattaðila

Skattaðili is the term used in Icelandic tax law to refer to a person or legal entity that is subject to taxation and required to file tax returns and pay taxes. The concept covers natural persons such as employees and the self-employed, as well as juridical persons such as companies, foundations, and other recognized entities that have tax liability. In practice, a skattaðili is the subject of tax administration and enforcement by the national tax authority, Skatturinn.

Who is a skattaðili? A person who is an Icelandic resident with Iceland-source income is generally a skattaðili, and non-residents with Iceland-source income can also be taxed as skattaðili for relevant obligations. Legal entities operating in Iceland—corporations, partnerships, and similar organizations—are skattaðilar for corporate or business tax purposes. VAT-registered traders and other entities with specific tax duties are also treated as skattaðilar for those obligations. The precise scope depends on the applicable tax laws and regulations.

Obligations of a skattaðili include registration with the tax authority, timely filing of tax returns, reporting of income, deductions, and credits, and payment of taxes due. Employers withhold payroll taxes on employees, while self-employed individuals may pay estimated or prepayments. Those subject to VAT must file periodic VAT returns and remit VAT. Tax records must be maintained to support reported figures and allow for audits.

Identification and rights: Taxpayers are identified in the system by a personal kennitala for individuals or a business kennitala for entities. Taxpayers have the right to receive notices, access their tax records, appeal assessments, and seek guidance or corrections from Skatturinn if needed.