Cases concerning property rates
The City Council has approved temporary changes to the Collection Rules of the City of Reykjavík due to actions related to the economic impact of the Covid-19 pandemic. The change will affect both businesses and individuals.
Defer due dates
Companies may request to postpone up to three due dates for property taxes and commercial property rates, due to a drop in income, until January 15, 2021. This measure is in line with newly passed legislation from Alþingi on measures to meet the economic impacts following the coronavirus pandemic.
- The conditions for this deferral are the same as the conditions for deferring public fees that must be applied for from Iceland Revenue and Customs.
- Companies apply for this deferral by submitting a case concerning property rates.
- Companies must have applied for a similar deferral of public fees from Iceland Revenue and Customs and the application must include a confirmation from Iceland Revenue and Customs concerning the application for deferral of public fees.
Information for commercial property owners
Payers of property rates can request to postpone up to three due dates for property taxes and property rates, (i.e.land leases, waste collection fees, and recycling fees) on commercial properties, due to a drop in income.
This measure applies to those experiencing significant operational hardship in 2020 due to a sudden and unforeseen drop in income, resulting from the general recession in Iceland and globally. On the basis of Act No 25/2020, they may apply for a deferral of returns on up to three due dates for property rates that are due in the period from April 1, 2020 to December 5, 2020. If conditions are met, the due date and final due date of the deferred payments is January 15, 2021.
The applicant must not have had property rates in arrears on Dec. 31, 2019.
Documentation with application
The following documents must be included with the application for deferral:
- Confirmation receipt from Iceland Revenue and Customs that an application has been made for a deferral of the due date for withholding tax (if the payer of the property rates is also an employer).
- A statement on:
- Reasons for the request for deferral
- Initial revenue forecast for 2020, updated revenue forecast for 2020, and actual revenue figures for 2019. The information should include income and, where applicable, contributed income, broken down, at a minimum, by quarter.
- Equity position Dec. 31, 2019
- Cash balance Dec. 31, 2019
- A statement that dividends will not be distributed and own shares will not be purchased in 2020, or (where applicable) that the owners' withdrawals during 2020 will not exceed their calculated remuneration.
Signature
The application shall be signed by the procurator of the company, or the person concerned in the case of sole proprietorship. The undersigned certifies that the information given in this application is in accordance with the best of their knowledge as to the financial condition at the time it was presented. The undersigned also confirms that the documents submitted with this application are legal and valid documents, prepared in accordance with the law. The City of Reykjavík reserves the right to request further documentation if necessary to process the application, both from the applicant and to retrieve information from Creditinfo Lánstraust hf.
The person signing this document confirms that they agree to the processing of the data and information provided or obtained through this application, and are aware of the purpose and execution of this processing.
The undersigned may withdraw this application at any stage of processing.
Assessment and processing
When evaluating and processing applications the above documents will be reviewed in light of the conditions stated in Act No 25/2020 and their purpose.