Tax return and tax assessment for individuals

The tax assessment is when the previous year's tax is settled. Additionally annual fees are charged; those are Broadcasting fee (útvarpsgjald) and Elder care construction fund (gjald í framkvæmdasjóð aldraðra).

Tax assessment for individuals is in May, each year.

Tax debt or refund

A refund following assessment is paid into the registered bank account. Any tax debt is divided into several due dates and collected through employers.

Refund after tax assessment

A refund after tax assessment may arise for various reasons, including:

• Unused personal tax credit or tax paid in the wrong tax bracket

• Child benefits and interest benefits

• Deductions reducing the income tax base (for example due to supporting young people or because of illness)

• Refund of capital income tax

• Municipal tax (útsvar) below the national average

Any refund is paid into the registered bank account. If no bank account information has been provided, it can easily be added under My Pages on Ísland.is.

Debt after tax assessment

A tax debt following assessment can usually be traced to one or more of the following:

• The media fee and the contribution to the Elder Care Construction Fund

• Exceeding the personal tax credit limit or tax paid in the wrong tax bracket (for example due to income from more than one employer)

• Contractor payments

• A grant where no deductible expenses were offset against the amount received

• Tax on rental income, capital gains, dividends, or interest income

• Municipal tax (útsvar) above the national average

Any debt is divided into up to seven due dates. Collection is generally carried out through employers, who receive a claim instructing them to withhold the amount from monthly wages.

Payment plan for a tax debts

If you wish, you may apply for a new payment plan and spread the payments over a longer period. A payment plan can reduce the monthly payment, but this will result in higher interest costs overall.

See further information on payment plans.

Request for correction

You may appeal the assessment by submitting a request for reassessment. There you can explain which items need to be amended in the tax return on which the assessment is based and submit supporting documents.

Once a decision has been made, a letter will be sent to your Digital Mailbox on Ísland.is.

I have not yet filed my tax return – what should I do?

If you have not yet filed your tax return, it is still available on Skatturinn's service portal. Log in using electronic ID or a password and submit the return.

The return will then be processed as an appeal, and a letter will be sent to your Digital Mailbox on Ísland.is once the results are ready.