On 21 December 2015, Iceland's parliament adopted tax measures included in the 2016 Budget. The main measures are as follows.
Individual Income Tax Reduced
From 1 January 2016, the lower individual income tax bracket rate is reduced from 22.86% to 22.68%, and will be further reduced to 22.50% for 2017. The middle tax bracket rate is reduced from 25.30% to 23.90% in 2016, and will be removed in 2017. The top tax bracket rate remains at 31.80% for 2016.
The standard 14.44% municipal rate, w…