Refund of paid withholding tax

You may apply for a refund of withholding tax paid if it is foreseeable that a refund will be due at assessment when the income year has been settled.

Applications are only accepted during the period from 1 October to 1 March each year.

A refund may be granted if the withholding tax paid is at least 20% higher than the expected final tax assessment.

The special cases that may be considered include situations related to:

• studies

• reduced income

• illness or accidents

• the death of a spouse

Refund due to joint taxation and transfer between tax brackets

You may also apply for a refund if the your income is taxed in the highest tax bracket while the income of your spouse with whom you are jointly taxed does not reach the highest tax bracket.

In such cases, the income tax that has been withheld from wages during the year is recalculated, taking into account a transfer between tax brackets for jointly taxed spouses.

Such a refund will never be less than 50,000 ISK or more than 300,000 ISK.

Application Umsókn

The application must include a justification and supporting documentation.

Once the application is approved, the refund amount is deposited into the registered bank account. Bank account details can be registered on Skatturinn's service portal.