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.