Iceland to Adopt New Taxation System Skip to content

Iceland to Adopt New Taxation System

By Iceland Review

The Icelandic government is currently looking into changes of the taxation system, including a three-level system with a 47 percent tax on individuals with a monthly income higher than ISK 500,000 (USD 4,000, EUR 2,700).

The government offices. Photo by Páll Stefánsson.

“It has been clear since last summer that we will make these taxation changes with equalization in mind, which means an increased tax burden on those who earn more,” Indridi H. Thorláksson, assistant to the minister of finance, told Fréttabladid.

Other options are a two-level system both on income tax and value added tax, fulfilling agreements to increase the personal exemption in keeping with the consumer price index and decrease the taxation percentage for the lowest wages from 37.2 to 36 percent.

However, no decisions in regard to a new taxation system have been made yet.

Click here to read more about the government’s taxation plans.

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