Invest Iceland Agency - General investments introduces the state of the art telecom sector in Iceland and the ground for e-commerce in Iceland at a Venture Market Conference in Stockholm November 1st.  Slide presentation (324 Kb)

The government has decided to implement substantial tax reforms, both for business and individuals. Among the changes is the reduction of the corporate income tax from 30 per cent to 18 per cent as of January 1st 2002. Also the corporate net wealth tax will be reduced from 1.2 per cent to 0.6 per cent at the end of 2002 and net wealth surtax and inflation accounting will be abolished. Furthermore, it is proposed that the tax treatment of individuals engaged in business will be subjected to the same rules as changes between other company types when they convert their business into private limited companies.

The Hal Hartley movie “No Such Thing”, which was released in Cannes this year, recently became the first film to receive reimbursement of 12% of production costs in Iceland, under a new regulation. Fridrik Thor Fridriksson, co-producer accepted the cheque from Minister of Industry and Commerce Mrs. Valgerdur Sverrisdottir on behalf of the production company Monster. Executive producer of the production was Francis Ford Coppola. Five production companies have now applied for rebates since the legislation was enacted, and several other projects are in the pipeline at present. Speaking when the first reimbursement was made, Fridrik Thor Fridriksson (Oscar nominee for best foreign film for his Children of Nature in 1992) said that “this government incentive has huge significance for the Icelandic film industry” and the Minister added that a new chapter was now beginning in Icelandic filmmaking, with even more active involvement by international production companies. “Iceland has now earned its place in the credits as an attractive location from both the artistic and the business point of view,” she commented.