Steingrimur J. Sigfusson, Icelandic Minister of Finance says he has submitted new bills on innovation to the Althingi parliament. If the Minister gets his way, innovation companies will be able to benefit from tax breaks and investors will be able to subtract shares in innovation businesses from their taxable income. The total package could be worth as much as ISK 1.5 billion to innovation companies each year.
The Minister spoke about the proposed assistance at this week’s conference on development and new business. He used part of his speech to talk about developments in other countries and spoke about his own bills which have already had their first parliamentary debate. He said that companies can already get part of their research and development costs refunded if carried out with the knowledge and approval of the Icelandic Centre for Research (RANNIS).
It is under discussion to allow individuals and legal entities to discount money invested in innovation company shares from their taxable income, RUV reports. Sigfusson said that the tax breaks will benefit the state and local councils in the long run as successful innovation companies start to hire more people and pay more tax.
The parliamentary bills look likely to be passed in Althingi’s autumn session and would then start to have an impact immediately in the New Year, although refunds to affected companies would come later.
This sounds like investors will be able to get tax relief on capital gain in certain shares. There should also be a package to allow entrepreneurs to get tax relief on capital gain from selling assets in their companies (similar to the UK scheme) – that would also help motivate small businesses.
“If [ Steingrímur J ] gets his way, innovation companies will be able to benefit from tax breaks and investors will be able to subtract shares in innovation businesses from their taxable income. The total package could be worth as much as ISK 1.5 billion to innovation companies each year.”
This all fine and all this but the capital gains tax of 10 % and the company corporation tax flat rate of 15 % that we have already is much better as it encourage all kind of comany to be formed here.
Problem with Steingrímur thinking is that some one has to decide what is ” innovation business ” and what is not.
And this means that the next innovative companies and busines model will get crushed by this higher rates on capital gains and companies that Steingrímur and enemy of the capitalist and ” friend of the workers ” Jóhanna clearly has in mind.
Idiots.
Because the last people who know what the innovation busioness is going to be are career politican like Steingrímur and particularly Jóhanna who are so far away from reality thinking and innovation ideas that it make my ears bleed.
( Where is this idea from ? Copied from Norway.. of course. Ironic of course. )
Whole point is that if they wanted to help innovators and entrepreneurs then get rid of stupid stupid laws that force directors of companys to take a salary equivalent to what they earned before in they last job.
( This stupiity comes even if the directors is not taking dividends. Tax office — when a small company is started and there is not the income to pay this salary out dont FORCE IT TO BE PAID. )
If there is no money for dividends and not much revenue then this is NOT A COMPANY being USED to EVADE TAXES you morons.
It is a startup company and what it needs to do is not have to pay the tax money to the tax office for this.
Removing this stupidity alone would do more to help innovation startup businesses in Iceland than any of these government politican appointees ” best ideas “.