Tax Incentives in Iceland
Film productions that qualify for a tax incentive can get reimbursed up to 25% of their production expenditure in Iceland. Pegasus can assist you in making your production qualify for the tax incentive and will undertake all the necessary legal work. Applications are submitted online to the Icelandic Film Centre and must be submitted before starting the production.
Production costs refers to all costs incurred in Iceland deductible from the revenues of enterprises pursuant to the provisions of the Act on Income. Payments pertaining to employees and contractors are only to be included in production costs if they are verifiably taxable in Iceland. When more than 80% of the total production cost of a motion picture or television programme is incurred in Iceland, the reimbursement is calculated on the basis of the total production cost incurred within the European Economic Area. The reimbursement scheme does not cover production of commercials or music videos.