A payment plan is a schedule for payment of taxes, fees and fines. The plan is made in order to lighten the payment burden and postpone collection measures. Thus, the payment schedule is not a contract for the reduction or cancellation of claims but rather shows how claims due shall be paid by means of distribution of payments.
Application for a payment plan
An application must be submitted for a payment plan. A payment plan can be made for most public fees, including lowering payroll deductions.
Conditions
Certain conditions have to be met to be permitted to apply for a payment plan online. They are:
Self-service is only open to those who owe newly levied taxes
For individuals, the total amount owed can be up to 2.000.000kr.
For companies, the total amount owed can be up to 10.000.000kr.
A payment schedule can only be made for the reduction of wage deductions due to council and municipal fund fees.
A payment plan on Island.is can only be made if the tax return and remittance forms have been submitted on time. Additionally, companies must have submitted their annual accounts.
It is not possible to make an online payment plan for claims that are subject to enforcement measures
Not all tax types can be paid with a payment plan.
If the conditions are not met or the payment plan is not followed, the payment plan will be cancelled.
Further information and service
People in the capital area who cannot use the payment plan on Ísland.is can apply for a payment plan with Skatturinn’s service staff and get help and more information.
Visit our office at Katrínartún 6 in Reykjavík.
People living outside the capital area can contact their local District Commissioner.
Expiry and late payment interest
Making a payment plan stops the claim from expiring. Any credits in the tax system will be used to offset debts in the payment plan according to laws and rules.
Statutory late payment interest is added to the claims even if they are included in a payment plan.
Service provider
Iceland Revenue and Customs