Wednesday, July 24, 2024

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    Assist those who have suffered significant loss of income

    The government today agreed to submit to the Althingi a bill from the Minister of Finance and Economic Affairs on income subsidies due to the coronary virus pandemic. The bill is intended to assist the self-employed and small operators who have suffered significant loss of income and is part of the government’s measures to reduce the damage caused by the epidemic and lay the foundations for strong resistance in the wake of it.

    This is stated on the website of the Ministry of Finance.

    It states that income support grants are intended, among other things, to support smaller operators working in the cultural and artistic sectors, tour guides, and other smaller parties in operation.

    Can not exceed 400,000 for each full-time equivalent

    “The grants will be equivalent to operating costs (including calculated remuneration) in the period from 1 April 2020 to 30 September 2020, but may not exceed 400 thousand. kr. for each full-time equivalent per month for an operator during the period.

    Revenue subsidies are part of an extensive measure taken by the government due to the economic impact of the coronavirus pandemic. Measures that have already been implemented include the payment of unemployment benefits in parallel with a reduced employment rate, an extension of the period of income-related unemployment benefits, payments for individuals’ salaries during the notice period, deferral of tax payments, closure grants, and bridge and support loans.

    The main conditions for an operator to apply for a loss of income grant:

    He has experienced at least a 50% drop in income during the period from 1 April to 30 September 2020.
    A maximum of three employees works for the operator.
    Applicants must also meet the conditions for tax liability in Iceland, minimum turnover, payment of public fees and documents to the Tax, and continued operations.
    If the bill remains unchanged, the Tax will take care of the processing of income subsidies.

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