On Mar. 7, ICL GVT issued act on temporary operational support.
ICL GVT published act on temporary operational support due to natural disasters in Grindavíkurbær.
Key Points
This law applies to individuals and legal entities that engaged in business/independent activities subject to income tax and had a permanent place of business in Grindavik.
The aim of this law is to promote that operators according to art 1 who have suffered a significant loss of income due to a natural disaster in Grindavik can maintain the necessary minimum activities, preserve business relationships and resume activities.
A party that falls under the scope of this law and meets all of the following conditions is entitled to temporary operating support: has unlimited tax liability in this country.
Their income in the month to which the application relates was at least 40% lower than in the same calendar month last year attributed to an environmental disaster.
They do not have outstanding tax fine that were due to be paid on Nov. 10, 2023.
And the business applying for support has not applied for bankruptcy with the state.
Operating support for each calendar month is equal to whichever of the following amounts is lower: the applicant's operating expenses for the month of application.
Or multiples of the following quantities: 600k ISK, number of full-time positions with the applicant in the calendar month to which the application relates, loss of income.
Operating support is considered taxable income according to the Income Tax Act.
Effectiveness
An application for support must be addressed to the Tax Office for each month and no later than Sep, 30, 2024 and processed no later than 2 months after application.
The act entered into force on Feb. 15, 2024, immediately after its adoption.
