Revenue from copyrighted material will now be taxed as capital gains in Iceland, and therefore not subject to income tax, RÚV reports. Performing rights organisations are welcoming this change, passed by the Icelandic parliament yesterday.
Musicians are one example of copyright holders who get paid royalties for the use of their compositions. The new amendment means they will no longer have to pay income taxes on this revenue. The legislation will also affect other types of creators, such as writer and visual artists. Icelandic Music Association Chairman Jakob Frímann Magnússon welcomed the change in a Facebook post, calling the legislation unique and its implementation the result of a 25-year battle.