The tax year is the calendar year. If you are subject to a limited tax liability you must file your tax return to the tax office in the region where you lived, while staying in the country, not later than one week before you leave the country. You can get a tax form RSK 1.13 at the local tax office or at the website, www.rsk.is. It is necessary that on the tax form you fill out your address in your home country, your taxpayer identification number (TIN) in your home country, and your agents address in Iceland.

If you didn't file your tax return before you left the country it is necessary to do so as soon as possible, and not later than March the year following the tax year. Those submitting their tax return electronically can download notices of collection and taxes from the service web page by using their password. You can apply for a password at www.skattur.is.

Assessment

Final assessment takes place on the basis of the tax return in the end of July the year following the tax year. If your withholding tax was higher than your assessment you will get a refund, and if you did not pay enough you must pay the residue. Any difference between income tax withheld and the assessed income taxes (state and municipal) is refunded, increased by 2,5% of the difference; any deficit is collected by 2,5%.If you have an agent in Iceland who can claim your tax refund or pay for you the residue, he must have a written permit from you to receive the payment.

Complaint

If you wish to file a complaint about the assessment you must contact the local tax commissioner. The complaint must be in writing. The tax commissioner must receive your complaint within thirty days after the date of your assessment.

If you are not satisfied with the tax commissioner's ruling you can appeal further to Yfirskattanefnd (The Board of Internal Revenue) within three months from the date of the ruling.