On 1 January 2014, detailed exit tax rules on cross border mergers entered into force in Iceland. As a result of the EFTA case E-14/13, the Icelandic parliament has added eight new paragraphs on the tax treatment of cross-border mergers to article 51 of Act No 90/2003.
The new exit tax rules stipulate that a merger by exchange of shares with a company that is resident in another EEA state, EFTA st…