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Financial Reporting and Auditing

Financial Reporting and Auditing in Iceland

A company operating in Iceland must submit annual accounts that comply with accounting rules and disclosures, which reflect a true and fair view of the company’s assets, liabilities, results and financial position as per standard EU requirements.

Every limited company in Iceland is required to elect an auditor or inspector and have its annual accounts audited. For public limited companies, a state-authorised public accountant must perform a full-scale audit. Publicly listed companies must elect two auditors, one of whom must be a state-authorised public accountant.

Foreign Source Income

Corporations registered in Iceland, with the main part of their income from foreign sources, can apply to keep their books of accounts and records in a foreign currency.

Limited liability companies registered on an official financial market are allowed to issue their share capital in a foreign currency. Other limited liability companies with the main part of their income from foreign sources will be able to issue their share capital in a foreign currency provided that certain requirements are met.

Non-resident Corporations and Branches

Corporations and registered branches of non-resident entities must file an annual income tax return, irrespective of whether or not they have any taxable income. The official filing time is before the end of May, but if the filing is done by a professional service (audit) company, the filing time is extended until September.

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For further information on the benefits of establishing a business in Iceland please feel free to contact us.