Global Daily Tax News, Iceland Set To Table Pillar Two Tax Legislation, (Feb 7, 2025)

The Icelandic Government has confirmed legislation will be tabled in parliament next month for the introduction of legislation for the implementation of the OECD's global minimum tax framework.

The legislation will ensure that multinational enterprises' income in Iceland is liable to a minimum tax of at least 15 percent, if the group has annual revenues of at least EUR750m or more, as reported in the consolidated financial statements of the ultimate parent entity, in at least two of the last four accounting periods.

Legislation is also being reintroduced in parliament this month for the implementation of a vehicle mileage tax, to be charge in the form of a toll. The levy will be introduced in place of the current general and special excise duty on fuel. The legislation will repeal the Act on Oil Tax and Mileage Tax, No. 87/2004, and the Act on Mileage Tax for the Use of Clean Energy and Plug-in Hybrid Vehicles, No. 101/2023. The legislation would raise the carbon tax in the Act on Environmental and Resource Taxes, No. 129/2009.