Iceland Delays Repeal of Resident Lender Exemption for Interest Deduction Rules

Iceland has reportedly delayed the effective date of the repeal of one of the exemptions from the country's interest deduction limitation rules. The rules were introduced from 1 January 2017 with a general limitation on the deduction of related-party debt expense equal to 30% of EBITDA with certain exemptions, including when the lender is tax resident in Iceland. The resident lender exemption was repealed in June 2017 with an intended effective date of 1 January 2018. However, the repeal of t…