Fees levied in assessment

Persons 16-70 years of age, in the income year, who bear unlimited tax liability in Iceland are liable to pay a contribution to The Senior Citizen's Construction Fund (Is. gjald í framkvæmdasjóð aldraðra) as well as a special fee to The Icelandic National Broadcasting Service (Is. útvarpsgjald). Both fees are levied in tax assessment following the income year.

Persons resident in Iceland are among those who bear unlimited tax liability as well as those who dwell in Iceland for more than a total of 183 days in every 12 month period. Included are periods abroad brought on by normal causes, such as vacation.

Pensioners, including disability pensioners, under the age of 70 years in the income year who live in a residential (Is. dvalarheimili) or a nursing home (Is. hjúkrunarheimili) are exempt.

Both fees are levied when annual income tax base exceeds a certain income threshold for the year preceding the tax assessment year. That includes capital income. The income threshold is adjusted annually. In the case of married couples or people with joint taxation the joint capital income is divided in equal portions between them when the income criteria is determined.

Only individuals are subject to pay a contribution to The Senior Citizen's Construction Fund. The fee to The National Broadcasting Service is also levied on legal persons.

Assessment year 2019:

Fee / contribution Amount Annual income threshold
The Senior Citizen's Construction Fund 11.454 kr. 1.750.783 kr.
The Icelandic National Broadcasting Service 17.500 kr. 1.750.783 kr.

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