Possible impact of taxation on Iceland’s international competitiveness
Páll Jóhannesson recently shared insights on Iceland's taxation system in daily newspaper Morgunblaðið and how it can affect the country’s competitiveness internationally. He points out that public discourse often fixates narrowly on tax rates while overlooking the complex and restrictive regulations that significantly impact the actual tax burden for both individuals and businesses.
In his view, Iceland's approach to taxation lags behind other Nordic countries, particularly in areas such as tax deductions and business restructuring flexibility. When reforms are proposed - such as reducing capital gains tax for foreign investors or allowing more comprehensive utilisation of business losses - they frequently encounter resistance from tax authorities. These objections typically cite concerns about potential tax avoidance and increased administrative workload.
Páll argues that such objections are often unfounded and observes that implementing new burdensome regulations seems considerably easier than enacting reforms that would reduce obstacles for businesses and stimulate investment. This regulatory imbalance ultimately puts Iceland at a competitive disadvantage compared to its Nordic counterparts.
The full article is available on Morgunbladid's website (in Icelandic only).
Páll Jóhannesson recently shared insights on Iceland's taxation system in daily newspaper Morgunblaðið and how it can affect the country’s competitiveness internationally. He points out that public discourse often fixates narrowly on tax rates while overlooking the complex and restrictive regulations that significantly impact the actual tax burden for both individuals and businesses.
In his view, Iceland's approach to taxation lags behind other Nordic countries, particularly in areas such as tax deductions and business restructuring flexibility. When reforms are proposed - such as reducing capital gains tax for foreign investors or allowing more comprehensive utilisation of business losses - they frequently encounter resistance from tax authorities. These objections typically cite concerns about potential tax avoidance and increased administrative workload.
Páll argues that such objections are often unfounded and observes that implementing new burdensome regulations seems considerably easier than enacting reforms that would reduce obstacles for businesses and stimulate investment. This regulatory imbalance ultimately puts Iceland at a competitive disadvantage compared to its Nordic counterparts.
The full article is available on Morgunbladid's website (in Icelandic only).
Páll Jóhannesson recently shared insights on Iceland's taxation system in daily newspaper Morgunblaðið and how it can affect the country’s competitiveness internationally. He points out that public discourse often fixates narrowly on tax rates while overlooking the complex and restrictive regulations that significantly impact the actual tax burden for both individuals and businesses.
In his view, Iceland's approach to taxation lags behind other Nordic countries, particularly in areas such as tax deductions and business restructuring flexibility. When reforms are proposed - such as reducing capital gains tax for foreign investors or allowing more comprehensive utilisation of business losses - they frequently encounter resistance from tax authorities. These objections typically cite concerns about potential tax avoidance and increased administrative workload.
Páll argues that such objections are often unfounded and observes that implementing new burdensome regulations seems considerably easier than enacting reforms that would reduce obstacles for businesses and stimulate investment. This regulatory imbalance ultimately puts Iceland at a competitive disadvantage compared to its Nordic counterparts.
The full article is available on Morgunbladid's website (in Icelandic only).