Iceland removes two types of taxes to relieve citizens
Iceland removes two types of taxes to relieve citizens

Iceland removes two types of taxes again, this came after the Finance Minister said today, the removal of taxes came to meet the needs of investors in order to support the economy.

Today, the Icelandic government removed two types of taxes to support local companies, in order to achieve more productive, sustainable and inclusive development.

As part of the issuance of the Icelandic government's economic plan, the Minister of Finance announced the removal of two expansion barriers faced by companies.

"At the present time, the costs are often associated with exploring whether you want to invest in new assets or business models that are not deductible for tax purposes," said the finance minister.

Business owners tell us that this can deter them from spending money looking for the best way to do things.

He also added that we are in Iceland changing this matter so that companies can deduct the 'feasibility expenses' from their tax bills, including projects that are not going forward.

This procedure will be included in the draft tax law that will be submitted to Parliament early next year, which means that the change can begin from the beginning of the next tax year.

While the second proposal announced today will change the rules for continuity of loss in Iceland to facilitate the startups attract investment and start working.

According to the rules currently in effect, a one-year loss company can use this loss to reduce its taxable income in the future, but the rules don't work well for startups trying to attract new investments.

The changes announced today, as part of the government's economic plan, depend on initiatives already announced.