On 1 October 2020, the Icelandic Parliament approved a Bill No.5 in order to implement tax measures under the 2021 budget. The bill includes the following measures;
- Taxes on carbon, alcohol and tobacco, oil, and car tax increased by 2.5%
- calculating the tax base of credit institutions and security companies on their assets, not on their deposits
- Reduce the proportion of the financial activity supervision fee;
- Impose a tax on emissions of fluorinated greenhouse gases
- Increase the tax-free threshold for inheritance taxes to 5 million kronur from 1.5 million kronur with an annual change of the threshold based on the consumer price index
The law would usually come into force on January 1, 2021.
