General information about income tax in Greenland
Greenland has its own tax legislation. With effect from 1 January 2007, income tax is levied and administered in accordance with Landsting Act No. 11 on the administration of taxes and Landsting Act No. 12 on income tax of 2 November 2006, with later amendments, regulations and tax treaties. The Acts apply to both persons and companies etc.
Limited tax liability.
Persons staying for less than six months in Greenland have a limited tax liability for income from employment and any payment in kind (free board, free lodging, free car etc.). Persons with limited tax liability are entitled to a standard deduction from their income. They are also entitled to a personal tax allowance based on the number of days with tax liability.
Full tax liability.
Persons who reside in Greenland or who stay there for at least six months are liable to tax on all income during their period of stay there (= tax liability period) - regardless of whether the income comes from Greenland, Denmark or abroad (global income principle). Income from and expenses relating to real property outside Greenland are exempted and will not be included in the tax basis.
You will find the personal allowance, standard deduction and tax rates in "Vejledning for tilflyttere til Grønland" I 1 (Guidelines for persons moving to Greenland - in Danish only) on www.aka.gl. The guidelines also provide a more detailed description of taxable income and allowances/deductions.
Income from employment.
Income from work performed in Greenland is taxable in Greenland regardless of whether the income is paid by an employer in Greenland, Denmark or abroad. The tax liability may be limited pursuant to the tax treaty with Denmark, the Faroe Islands, Iceland or Norway.
Persons with full tax liability in Greenland are liable to tax on pensions. Pensions from Denmark are taxable in Greenland only. Pensions from the Faroe Islands, Iceland and Norway may also be taxable in the source country, in which case credit (tax reduction) will be granted from the tax in Greenland for tax paid on the pension in the other country. Pensions from countries with which Greenland has no tax treaty are liable to tax, and a reduction in the tax in Greenland may be allowed where tax has been paid in the source country.
Students from Denmark, the Faroe Islands, Iceland or Norway staying in Greenland for the purpose of studying will not be taxed in Greenland on money they receive for their living expenses from their home country.
Income from real property outside Greenland is not liable to tax in Greenland. No deduction is allowed for interest expenses relating to real property outside Greenland.
Persons resident outside Greenland who own real property in Greenland have a limited tax liability to Greenland. Income from the letting of real property is liable to tax.
Greenland has tax treaties with Denmark, the Faroe Islands and Norway. If income from one of these countries is taxable in both countries and the person is resident in Greenland according to the tax treaty, a credit (tax reduction) will be granted from the tax in Greenland.
Persons with income from countries with which Greenland has no tax treaty are, pursuant to internal legislation, entitled to a reduction of the tax on the income in Greenland.
For further information and the current tax legislation, see the Tax Authority's website www.aka.gl.
Any questions about tax in Greenland can be addressed to the Government of Greenland, via the tax portal, or by contacting:
The Government of Greenland, the Tax Authority, P.O. Box 1605, 3900 Nuuk,
phone: +299 34 65 01, E-mail: firstname.lastname@example.org.