Tax Audit Rights in Iceland
Reviewed by the Commoner Law Editorial Team. 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?
As a taxpayer, you have rights during a tax audit:
- Written notice: Audits are conducted through formal written communication with strict procedural rules.
- Right to representation: A representative (accountant or lawyer) can act on your behalf with written authorisation.
- Right to appeal: You can challenge audit results through the same two-tier administrative process (RSK, then Yfirskattanefnd) plus two judicial levels.
Statute of limitations for reassessment:
- 2 years — if you filed returns properly with all necessary information.
- 6 years — standard limitation period.
- 10 years — for income and assets in low-tax jurisdictions.
When does it apply?
- RSK selects your return for examination — either through electronic screening or formal supervisory plans.
- Audits can range from a few weeks to over a year in duration.
What to Do If Skatturinn Is Auditing Your Tax Return in Iceland
- Respond to all written communications from RSK within the stated deadlines.
- Consider engaging a tax advisor or accountant to assist you.
- Keep all records organised — payslips, receipts, bank statements, and prior tax returns.
What should you NOT do?
- Don't ignore RSK communications — failure to respond can result in an estimated assessment that may be higher than your actual liability.
- Don't destroy records — you should retain tax records for at least 6 years.
Common Questions
What are my rights during a tax audit in Iceland?
Audits must be conducted through formal written communication with strict procedural rules. You have the right to representation — an accountant or lawyer can act on your behalf with written authorisation. You can challenge audit results through the same two-tier appeal process (RSK, then Yfirskattanefnd) and up to two levels of judicial courts.
How far back can Skatturinn reassess my Icelandic taxes?
The standard limitation period is 6 years. If you filed returns properly with all necessary information, reassessment is limited to 2 years. For income and assets held in low-tax jurisdictions, the period extends to 10 years. Audits can range from a few weeks to over a year in duration, depending on complexity.
What should I do when I get an Icelandic tax audit notice?
Respond to all written communications from RSK within the stated deadlines — ignoring them can trigger an estimated assessment that may be higher than your actual liability. Consider engaging a tax advisor or accountant. Keep records organised: payslips, receipts, bank statements, and prior tax returns. Retain tax records for at least 6 years.
When does it apply — tax audit rights?
RSK selects your return for examination — either through electronic screening or formal supervisory plans.Audits can range from a few weeks to over a year in duration.
What should I do if I receive a notice that the Icelandic tax authority is auditing my tax return?
Respond to all written communications from RSK within the stated deadlines.Consider engaging a tax advisor or accountant to assist you.Keep all records organised — payslips, receipts, bank statements, and prior tax returns.
What should you NOT do — tax audit rights?
Don't ignore RSK communications — failure to respond can result in an estimated assessment that may be higher than your actual liability.Don't destroy records — you should retain tax records for at least 6 years.