Iceland has published Law No. 132 of 12 December 2019 in the Official Gazette, which entered into force on 1 January 2020 and includes individual income tax measures of the 2020 Budget. One of the main measures is the amendment of the annual individual income tax brackets and rates, including an additional lower bracket for income in 2020 as follows:

• up to ISK 3,962,699 - 20.6%
• over ISK 3,962…