On 13 October 2016, the Icelandic parliament passed legislation on government actions against tax evasion. Two of the main measures include new interest deduction limitations rules based on BEPS Action 4 and Country-by-Country (CbC) reporting requirements based on BEPS Action 13.
Interest Deductions
The legislation includes the introduction of an interest deduction limitation equal to 30% of EBITDA. However, certain exemptions are provided, including where:
- The taxpayer's total related pa…