Iceland's government has announced that the second phase of changes in personal income tax is effective from 2021. As previously reported, this includes a reduction in the bottom bracket tax rate to 17.0% in 2021 and an increase in the middle bracket rate to 23.5%, resulting in the following annual tax brackets and rates for 2021:

• up to ISK 4,188,211 - 17.0%
• over ISK 4,188,211 up to ISK 11,75…