Detailed
Tax Credit
Persónuafsláttur
- Individuals who will turn 16 in the becoming year and have a legal domicile in Iceland are entitled to a tax credit which is deducted from the amount calculated on the basis of employment income.
- The tax credit is ISK 42,205 pr. month.
- Tax credit is not given without a tax card.
- Tax credit can be transferred in full between married couples, individuals in registered cohabitation and between individuals in registered partnership (confirmed cohabitation of the same sex). ,
- Tax credit can be accumulated between months in the same tax-year and unused tax credit can be transferrable between couples if requirements are met.
- Unused accumulated tax credit which is not used within a tax-year (January – December) expires in the beginning of a new year.
Example of how a tax credit works:Calculated tax: 75,000 ISK Tax credit: 42,205 ISK Deduction of salaries: 32,795 ISK |
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