Iceland: The Directorate of Internal Revenue publishes tax rates and allowances for 2017

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The Directorate of Internal Revenue has published some information on 29th of December 2016 regarding the applicable rates and amounts for corporate and individual taxation. A 20% corporate tax rate is pertinent for public and private limited liability entities and cooperatives. Additionally, a 36% rate applies for other legal substances.

National income tax is processed on the premise of two classifications:

  • A 36.94% tax rate is imposed on the first ISK 834,707 per month and a 46.24% tax rate is applied for any amount more than ISK 834,707 per month.
  • The individual tax credit is ISK 634,884 per year; Capital gains tax is 20% but an exemption is applies for the first ISK 125,000.

 

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