2011年-IMF国际货币组织全球_Iceland_Advancing_Tax_Reform_and_the_Taxation_of_Natural_Resources_80页_1010kb

Summary of "Iceland: Advancing Tax Reform and the Taxation of Natural Resources"

Core Content

This report, prepared by the IMF Fiscal Affairs Department in May 2011, outlines tax reform recommendations for Iceland with a focus on improving the efficiency and equity of the tax system, and enhancing the taxation of natural resources. The report is based on a technical mission conducted in Reykjavik and includes input from various stakeholders, including government officials, industry representatives, and experts.

Main Views and Key Information

Iceland's Fiscal Situation and Tax Reforms

• Iceland has made significant progress in raising revenues to address its fiscal deficit.
• Tax reforms implemented between 2009 and 2011 increased revenues by approximately ISK 8 billion (about 2% of GDP) in 2011.
• The report emphasizes the need to shift focus from short-term revenue generation to long-term growth and efficiency.

Corporate Income Tax (CIT) Reform

• Interest Deductions: New rules should be introduced to limit the deductibility of interest, and interest paid abroad should be taxed.
• Intercompany Dividends: Treatment should align with European standards.
• Debt Forgiveness: Temporary provisions for tax-neutral debt forgiveness should be extended to debt conversions.
• Profit Calculation: The report recommends adopting financial accounting rules to determine taxable profit more accurately.

Taxes on Labor Income

• Closely-Held Businesses (CHBs): Income should be reallocated from capital to labor, and tax rates should be adjusted to broaden the tax base and reduce social security contributions.
• Personal Income Tax (PIT): Rates should be steepened to increase revenue from high-income earners.
• Social Security Contributions (SSC): Broadening the tax base through reallocation of income in CHBs allows for lower SSC rates for all workers.
• Pension Contributions: Should be aligned with other labor income taxes.

Capital Income and Wealth Taxes

• The net wealth tax (effectively a second income tax on capital) should be allowed to expire to avoid double taxation.
• Revenues from the net wealth tax should be replaced by increasing taxes on less mobile assets like real estate and high-income labor.
• Increasing the local property tax to its maximum rate of 0.625% could add 0.7% of GDP in revenues for local governments.
• Steepening PIT rates could add an additional 0.25–0.4% of GDP.

Value-Added Tax (VAT) and Excises

• VAT Reform: The gap between VAT rates should be reduced or eliminated, and non-standard exemptions removed.
• Top Rate Reduction: The top VAT rate could be reduced to 25% to improve competitiveness.
• Excise Taxes: Alcohol, tobacco, and fuel excises should be increased, especially in comparison to other European countries.
• Compensation Mechanism: Refundable tax credits could be introduced to compensate lower-income households for higher prices due to VAT changes.

Financial Sector Taxation

• Bank Tax: Should be maintained, but the rate and base should be adjusted based on financial risk.
• Financial Activities Tax (FAT): Introduction of FAT is recommended to improve the tax treatment of financial institutions.
• Derivatives Taxation: The report suggests revising the tax treatment of derivatives to ensure fairness and efficiency.

Environmental Taxation

• Carbon Tax: Introduced in 2010, it should be extended beyond 2012, with a broader base and higher rate.
• Electricity Tax: Should be extended and increased to meet EU minimum standards.
• Emissions Taxes: Taxes on SO₂ and NOₓ, as well as landfill and incineration, could be considered to achieve environmental goals.
• Excises on Fuels: Rates on petrol and diesel are still below European levels and could be raised.

Natural Resource Taxation

• Hydropower and Geothermal Resources: These are the primary natural resources in Iceland, with hydro accounting for 73% and geothermal 27% of electricity generation.
• Resource Rent: The report highlights the importance of capturing resource rent through taxation and resource charges.
• Lease Terms and Charges: Lease durations should be linked to the flexibility of resource charges, and resource charges should be based on environmental costs and project performance.
• Ownership and Competition: The government should consider consolidating resource rights into a single entity to improve efficiency and transparency.
• Transparency and Fair Pricing: Electricity prices should be transparent and based on marginal production costs, with a focus on fair competition between government and private power companies.

Petroleum Resources

• Offshore petroleum potential exists in the Dreki area, north of Iceland.
• Exploration is costly and technically challenging, with only large discoveries likely to justify development.
• A first licensing round in 2009 was unsuccessful due to unattractive fiscal terms, including royalties that increase with production.
• The government is currently revising the fiscal framework for petroleum extraction.

Key Recommendations

• Broaden tax bases and rationalize anomalies in the tax system.
• Maintain and adjust the bank tax to reflect financial risk.
• Introduce a financial activities tax (FAT) and revise the taxation of derivatives.
• Reform VAT to reduce the gap between rates, remove non-standard exemptions, and consider lowering the top rate.
• Extend and increase excise taxes on alcohol, tobacco, and fuels.
• Reform the net wealth tax and increase taxes on real estate and high-income labor.
• Reallocation of income in CHBs to improve equity and broaden the tax base.
• Consolidate resource rights and improve transparency in resource allocation and pricing.
• Link resource charges to environmental costs and project performance.
• Revise petroleum fiscal terms to include a modest flat-rate extraction levy and standard CIT.

Environmental and Resource Challenges

• Iceland's power market is unique due to its geographical isolation and reliance on negotiated pricing.
• The electricity transfer price (ETP) is determined by the marginal producer that breaks even.
• The aluminum industry consumes a large share of electricity, and its contracts often include aluminum price links.
• The carbon tax and EU ETS participation are key steps toward environmental taxation.
• Resource rent taxation is crucial to ensure the state captures value from natural resources.

Conclusion

The report presents a comprehensive set of tax reform options aimed at improving the efficiency and fairness of the tax system in Iceland. It emphasizes the importance of resource taxation, particularly for hydro and geothermal energy, and environmental taxation to align with broader economic and social objectives. The proposed reforms are expected to increase revenues by approximately 1.6% of GDP over the medium term.