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Daily Tax Report: International

Iceland MOF Announces 2021 Budget Proposal

Oct. 7, 2020, 5:00 AM

The Icelandic Ministry of Finance and Economic Affairs Oct. 1 announced the 2021 budget proposal. The proposal includes measures that would: 1) introduce a three-bracket tax system for individual income tax; 2) increase the lowest threshold for disposable income for individuals to 120,000 Icelandic Krona (US$165,672) annually; 3) decrease payroll taxes; 4) double the standard R&D expense deductions for companies; 5) increase the carbon tax and impose a tax on emissions of fluorinated greenhouse gases; 6) waive VAT on purchases of eco-friendly motor vehicles, bicycles, and home charging stations; and 7) increase the tax-free threshold for inheritance taxes. [Iceland, Ministry...

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