Iceland Budget Measures for 2018 Approved

Iceland's Ministry of Finance and Economic Affairs has announced the approval of the budget for 2018 in parliament on 29 December 2017. The tax-related measures of the budget are mainly limited to:

• An increase in the tax rate on capital income for individuals from 20% to 22%, with an increase in the exemption for interest income to ISK 150,000;
• An increase in the lower/upper individual income tax bracket threshold, resulting in the following tax brackets for 2018 (rates unchanged; includes …