R&D Tax Credit


In June of 2016 the parliament passed an Innovation Bill which introduced various reforms to reduce the tax burden on startups and their employees. Key elements of the bill include:

  • Change in taxation of both stock-options and convertible bonds, taxed at the realiastion of profit rather than at the date of exercise.
  • Tax break of 25% for foreign workers in Iceland, subject to several selection criteria.
  • Angel investors and equity investments to recieve tax breaks for small companies donations. The minimum amount invested to be eligible for a tax deduction is 300,000 ISK, with a deduction of 50% for the first 3 million ISK.
  • Increased rax refund for R&D investments in companies.


Swanson Reed offers the following services:

  • Advice on tax preparation relevant to claiming the R&D tax credits incentive
  • Preparation of documents relating to filing and substantiating a R&D taxation claim
  • R&D tax advice and consultations
  • R&D tax claim planning and preparation

For a full range of services in relation to the credit, please click here.