The Government of Iceland has submitted a draft bill in parliament that extends temporary provisions added in 2020 to the Act on Support for Innovative Enterprises (Act no. 152/2009). The temporary provisions increased the special deductions for research and development (R&D) expenses to 35% of qualifying expenses for SMEs and 25% for large companies for tax imposed in 2021 and 2022 in respect of financial years 2020 and 2021. The temporary provisions also increased the R&D expense c…