Fines for not submitting annual financial statements

A fine of 600 thousand ISK is imposed if annual accounts or consolidated accounts are not submitted on time.

Companies are notified by:

• A letter at Ísland.is on the company's My Pages.

• A claim appears on the company's online bank.

Fines are not waived even if annual accounts or consolidated accounts are submitted.

A fine is imposed even if:

• There is a lack of knowledge of applicable laws and regulations within the company.

• There is little or no business in the company or enterprise.

• One of the persons responsible for the returns has been ill.

• The company is in a bad financial position.

• An accountant, inspector or auditor has made a mistake.

• There has been a misunderstanding or lack of communication between the company and the company's accountant, inspector or auditor.

Discount

If satisfactory annual accounts or consolidated accounts are received within a certain period, the fine will be reduced. It is calculated from the date on which the decision to impose the fine is made.

The fine is reduced by:

• 90% if returned within 30 days. The claim will not be reduced immediately upon payment but at the end of this 30-day period.

• 60% if returned within 2 months. The claim will not be reduced immediately upon payment but at the end of this 2-month period.

• 40% if returned within 3 months. The claim will not be reduced immediately upon payment but at the end of this 3-month period.

Cancellation of fine

In exceptional cases, fines are canceled if it can be demonstrated and justified that circumstances beyond your control prevented the timely submission of the tax return. The condition is that satisfactory annual or consolidated financial statements have been submitted when applying for cancellation of the fine.

Applications are made by sending a request for reconsideration and justification to the email address: skatturinn@skatturinn.is.