Iceland To Expand Scope of Joint Taxation and Interest Deduction Limitation

According to recent reports, the Iceland Ministry of Finance and Economic Affairs is preparing draft legislation to amend the Income Tax Act with regard to group taxation. The main amendments concern joint taxation and interest deduction limitation rules.

The first main amendment would expand the joint taxation rules so that companies from EEA and EFTA countries and the Faroe Islands could take part. Currently joint taxation is limited to Iceland tax residents only with a 90% ownership thres…