Update - Icelandic Government Announces Response Package to COVID-19

The Government of Iceland has issued a release on its package of first-phase response measures to mitigate the effects of the COVID-19 pandemic. With respect to taxation, the release includes the following:

Taxes Postponed

Companies will be given the opportunity to postpone the payment of taxes until next year to improve liquidity in business operations. Hotel taxes will be abolished until the end of 2021.

Reductions in bank taxes and state guarantees on loans to eligible companies are d…