CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Iceland May Tax Payments To Bank Sector Creditors

Iceland May Tax Payments To Bank Sector Creditors

by Ulrika Lomas, Tax-News.com, Brussels

15 April 2015


Iceland's Prime Minister, Sigmundur Davíð Gunnlaugsson, anticipates that Iceland will be in a position to settle claims against Icelandic banks that went bust in 2008 by the middle of this year, alongside the imposition of a "stability tax."

During his speech to the Progressive Party conference on April 10, Gunnlaugsson indicated that plans for such a stability tax – an exit tax – would be introduced before the Icelandic Parliament's summer recess. It would be imposed on foreign creditors, including hedge funds, on funds recovered and repatriated when the assets of the banks are divvied out.

The Prime Minister confirmed that the Government has been preparing the measure for some time, while waiting for administrators to present concrete plans to wind up the banks. The tax would be introduced before this process is complete.

The tax could limit the flight of capital out of Iceland, which the Government says will prevent a rapid fall in the Icelandic currency. According to Gunnlaugsson, it would also generate "hundreds of billions of krona."

Previously, a tax rate of up to 40 percent was mooted, with a lower rate considered for if creditors agree to take receipt of funds over a longer period.

TAGS: individuals | tax | investment | business | Iceland | banking | capital markets | hedge funds | exit tax | currency

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »