Statutory penalty interest is levied on taxes, fees and fines, even though they have been included in a payment plan. The payment plan does not prevent late interest from continuing to be applied in a statutory manner to claims.
It is therefore in the interest of the taxpayer to pay charges in arrears as soon as possible. The longer the debt remains unpaid, the longer the arrears interest is added. Long term and repeated renewals result in higher interest costs and inconveniences.
Service provider
Iceland Revenue and Customs