Iceland.

[Moony]

Hi - I'm new to the boards, but i'm after a little advice.

I have been offered a contract in Iceland and was wondering if anyone knows anything about the tax implications where I to take it.

I will be working a 10 on 4 off shift pattern, mostly based in Iceland, but there will also be some opportunity for remote working from the UK - as well as international travel further afield (continental Europe and the USA). It's likely i'll be working between 150-200 days a year in Iceland.

I own a UK based limited company and this company will be employed to provide services which I will render. My company invoices will be paid in GBP by the UK subsidiary of the company I will be working for in Iceland.

I have read that Iceland has a double taxation treaty with the UK - and that I can apply for tax exemption using an RSK 5.42 form on the basis that I will retain full tax liability in the UK.

Has anyone got any experience doing this? Is it simply a case of fill in the form - then do my accounting, paying my taxes in the UK as normal?

[SueEllen]

If you are based in Iceland then you must pay tax in Iceland.

Nordic countries have simple tax rules and they expect you to obey them.

Don't try and do any dodgy schemes as oddly UK government agencies are very accommodating to other countries taxmen, plus the agency and client will simply tell the Icelandic taxman you are there as they are legally obliged to.

I suggest you Google the Icelandic tax office to see if they have any English pages as other Nordic countries do.

[Moony]

Thanks for the reply.

I'm not suggesting any "dodgy schemes". The information I have found so far comes directly from the Icelandic "Directorate of Internal Revenue" website.

https://www.rsk.is/english/companies...n-conventions/

"Iceland has concluded several agreements on tax matters with other countries. Individuals with a permanent residence and with full and unlimited tax liability in either one of the contracting countries may be entitled to exemption/reduction from taxation of income and property according to provisions of the respective agreements"

"NOTE: Exemption/reduction from taxation in Iceland according to agreements in force can only been achieved by applying for exemption/reduction on form 5.42 to the Director of Internal Revenue."

The RSK 5.42 form is entitled "Application under Double Taxation Conventions for exemption from Icelandic taxation and/or refund from taxes paid". Presumably because the UK has a double taxation treaty with Iceland - this form would apply.

To be clear - i'm not looking for a tax dodge. I am happy to pay my full tax liability in either Iceland or the UK or mixture of partial taxation in the two if that's what's necessary - but surely you don't pay full tax liability in both countries (i.e. double tax). Is that not what the double taxation conventions are supposed to address?

[stek]

As an aside Icelandic is an inflected language unlike sister languages Norwegian, Swedish and Danish. Very strange.

Better half is a linguist.....

I used to work in Iceland but recently relocated to Farmfoods.

[zazou]

A good friend of mine works for an Icelandic company but he's based in the UK.
100% WFH plus the occasional trips to USA. (What does your accountant say?®©)

He's got a UK limited company and pays all taxes here.

Pm me if you need more information or ask in the thread.

[SimonMac]

Ask your mum?