On 18 September 2026, Iceland’s Directorate of Internal Revenue (Skatturinn) announced that Regulation No. 1014/2026 on amendments to the classification system for sustainable investments has entered into force. The regulation transposes EU Commission Delegated Regulation 2026/73 into Icelandic law, aligning the country’s financial reporting framework with the EU Taxonomy Regulation. The changes affect financial undertakings, large companies, and other entities subject to non-financial reporting obligations, requiring them to disclose the proportion of their investments that qualify as environmentally sustainable under the updated technical screening criteria. The amendment introduces new disclosure templates, clarifies the treatment of transitional and enabling activities, and extends reporting obligations to cover additional environmental objectives beyond climate change mitigation and adaptation. Companies must ensure their 2026 financial statements reflect these updated requirements, with the first reports due in 2027 for the 2026 financial year.
Key Takeaways
- Alignment with EU Taxonomy: The regulation fully incorporates the latest EU delegated acts, ensuring Icelandic firms remain compliant with European sustainable finance standards and facilitating cross-border investment comparability.
- Expanded Reporting Scope: Entities must now report on all six environmental objectives, including water, circular economy, pollution prevention, and biodiversity, significantly increasing data collection and assurance burdens.
- Immediate Effective Date: With the regulation taking effect on 18 September 2026, affected entities should urgently review their taxonomy-eligibility assessments and update internal reporting systems to capture the required key performance indicators (KPIs) for the current financial year.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement