New Bank Tax

30.09.2014
With Act no. 155/2010 on Special Tax on Financial Institutions, a new tax was introduced with the purpose of funding cost that the Icelandic Government had incurred due to the collapse of the Icelandic financial system and to reduce its risk seeking.
Taxable are commercial banks, savings funds, credit institutions and others authorized to receive deposits.  Tax base is total liabilities exceeding ISK 50 billion.  Tax ratio is 0,376% for 2013 and 0,1285% for 2012.
 
Financial institutions in winding-up proceedings were exempt from this Act.  But with Act no. 139/2013 on the Government Budget for 2014, which the Icelandic Parliament approved on 20 December 2013, a change was made where they were incorporated under the law.  Tax base for winding-up institutions is total approved claims exceeding ISK 50 billion.
 
At year end 2013 total approved claims amounted ISK 60 billion, which means that BYR will have to pay ISK 38 million in Bank Tax in 2014.