Tax Appeals in Iceland (2026 Legal Guide) — Rules & Requirements
About this article
Sourced from Icelandic Acts of the Althingi, statutory instruments, and official guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
Iceland has a two-step administrative appeal route for tax disputes:
Step 1 — Internal review by Skatturinn:
- Send a written complaint to Skatturinn (RSK) within 60 days of the date of the assessment.
- Skatturinn reviews the matter and issues a ruling.
Step 2 — Appeal to the State Tax Board of Appeals (yfirskattanefnd):
- Appeal Skatturinn's ruling within 3 months of the date of the ruling letter.
- The State Tax Board of Appeals must rule within 6 months of receiving all documents.
- No fee to file an appeal.
- If the ruling is in the appellant's favour, the State Tax Board of Appeals can order reimbursement of appeal costs and overpaid taxes.
In addition to the administrative appeal, taxpayers have access to two court levels.
When does it apply?
- You disagree with a tax assessment issued by Skatturinn.
- You believe Skatturinn made an error in calculating the tax, applied the wrong rate or refused a lawful deduction.
What to do if you disagree with a tax assessment from Skatturinn in Iceland
- Respond within 60 days — send a complaint to Skatturinn without delay.
- If Skatturinn's ruling is unsatisfactory, appeal to the State Tax Board of Appeals within the deadline stated in the ruling letter.
- Gather supporting documents — tax returns, receipts and calculations.
What should you NOT do?
- Don't let the deadlines lapse — the 60-day and 3-month deadlines are strict.
- Don't stop paying taxes while the appeal is being processed — an appeal does not defer the payment deadline or cancel default interest.
About Tax Rights in Iceland
Income tax in Iceland is progressive in three brackets under lög um tekjuskatt (the Income Tax Act, Lög nr. 90/2003) and combines state tax and municipal tax (~14.94%). All residents aged 16 and over receive a personal tax credit (persónuafsláttur) that is transferable between spouses. Capital income is taxed at 22%. VAT (Lög nr. 50/1988) is 24% standard and 11% reduced — businesses register once turnover exceeds 2 million kr. Skatturinn (the tax authority) handles the assessment. You can appeal to yfirskattanefnd (the State Tax Board of Appeals) and from there to the district courts. Employers pay a social security contribution (tryggingagjald) under Lög nr. 113/1990.
Common Questions
How do I appeal a tax assessment in Iceland?
Iceland uses a two-step administrative appeal route. First, send a written complaint to Skatturinn within 60 days of the date of the assessment. If Skatturinn's ruling is unsatisfactory, appeal to the State Tax Board of Appeals within 3 months of Skatturinn's ruling letter. In addition to the administrative appeal, taxpayers can take the matter to two court levels.
How long does a tax appeal take in Iceland?
The State Tax Board of Appeals must rule within 6 months of receiving all documents. There is no fee to file an appeal. If the ruling is in the appellant's favour, the State Tax Board of Appeals can order reimbursement of appeal costs as well as overpaid taxes. Gather supporting documents — tax returns, receipts and calculations — before filing the appeal.
Do I still have to pay tax while my appeal is being processed in Iceland?
Yes. An appeal does not defer the payment deadline or cancel default interest. You must continue to pay the assessed taxes on time even while a dispute is ongoing. The 60-day deadline to complain to Skatturinn and the 3-month deadline to appeal to the State Tax Board of Appeals are strict and will not be extended.
What is the the right to appeal a tax assessment right in Iceland?
Iceland has a two-step administrative appeal route for tax disputes:Step 1 — Internal review by Skatturinn:Send a written complaint to Skatturinn (RSK) within 60 days of the date of the assessment.Skatturinn reviews the matter and issues a ruling.Step 2 — Appeal to the State Tax Board of Appeals (yfirskattanefnd):Appeal Skatturinn's ruling within 3 months of the date of the ruling letter.The State Tax Board of Appeals must rule within 6 months of receiving all documents.No fee to file an appeal.If the ruling is in the appellant's favour, the State Tax Board of Appeals can order reimbursement...
When does it apply — the right to appeal a tax assessment?
You disagree with a tax assessment issued by Skatturinn.You believe Skatturinn made an error in calculating the tax, applied the wrong rate or refused a lawful deduction.
What should I do if I believe Skatturinn has assessed me incorrectly in Iceland?
Respond within 60 days — send a complaint to Skatturinn without delay.If Skatturinn's ruling is unsatisfactory, appeal to the State Tax Board of Appeals within the deadline stated in the ruling letter.Gather supporting documents — tax returns, receipts and calculations.
What should you NOT do — the right to appeal a tax assessment?
Don't let the deadlines lapse — the 60-day and 3-month deadlines are strict.Don't stop paying taxes while the appeal is being processed — an appeal does not defer the payment deadline or cancel default interest.