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Iceland Budget for 2024 Includes Temporary Additional Income Tax on Legal Entities — Orbitax Tax News & Alerts

Iceland's Budget for 2024 was submitted in parliament on 12 September 2023. According to an English-language release on the budget, two of the main tax-related measures include:

  • An increase in the personal deduction by just over ISK 5,000 per month, and an increase in the tax-free threshold by just over ISK 16,000; and
  • The hotel accommodation tax, which was temporarily suspended during the pandemic, will be reinstated and also extended to cruise ships.

Another key measure is noted in the Icelandic-language presentation from the Minister of Finance, Bjarni Benediktsson, which is a temporary additional income tax of 1% on legal entities that will apply for one year in 2024. Further details on the implementation of these measures will be published once available.