Iceland Gazettes Announcement on 2026 Taxation Rules for Employee Benefits

The Icelandic Official Gazette Dec. 30, 2025, published Announcement No. 1559/2025, on employee benefits for 2026. The notice includes that: 1) miscellaneous work-related benefits exceeding the threshold of 192,000 Icelandic kronur (US$1,524) are income to the employee; 2) benefits for employer-owned vehicles purchased in 2014 or later are calculated at 28 percent of the original purchase price for vehicles powered by fossil fuel, and 20 percent for vehicles powered by electricity, hydrogen, or methane; 3) the exemption for employer-paid environmentally friendly commuter expenses is up to 138,000 kronur (US$1,095) based on work throughout the year, or 11,500 (US$91) monthly; 4) ...