Tuesday, March 16, 2010

Iceland Abandons the Flat Tax

In the wake of its financial and economic crisis, Iceland modified its personal income tax.

Effective January 1, 2010, Iceland replaced its 35.7% flat-rate personal income tax (combined national and municipal) with three national rates: 24.1% on income up to ISK (Iceland Krona) 2,400,000; 27% on income between ISK 2,400,001 and ISK 7,800,000; and 33% on income exceeding ISK 7,800,001 (US$1=ISK 126.2). The additional municipal tax on these brackets ranges between 11.24% and 13.28% , putting the top personal rate at 46.28%.

It should be noted that Iceland’s flat-tax rate was the highest in the list of flat tax countries, some 10.7 percentage points above the next highest rate of 25%.

The corporate tax rate remains a flat 18%.

2 comments:

mewmewmew said...

A flat tax is a percentage charge applied equally to everyone, regardless of their income level, investments, or other financial characteristics.





business opportunity
Übersetzung Deutsch Englisch

Деян Кривошеенко said...

Hi there, in now days many people would die for their own apartment in Lublin. Especially when it’s placed in nice
location. Thing that have the biggest impact, on how do we perceive level of attraction the flat is: location, good
condition of property, environment and well planned space. Before we decide to buy our own estate we should find out
what level of prices is in the neighborhood. http://apartmentsinlublin.com/ Click and you will be surpriced.