Tax
Type | Amount |
|---|---|
Corporate tax | 25% |
Dividend tax | 36% |
Dividends can be deducted, whereby the total of Corporate Tax and Dividend Tax is 36 %
Personal tax
Location | Where | Amount |
|---|---|---|
Residence of Greenland: | Kommune Kujalleq | 44% |
Kommuneqarfik Sermersooq | 42% | |
Qeqqata Kommunia | 42% | |
Kommune Qeqertalik | 44% | |
Avannaata Kommunia | 44% | |
Residence outside of Greenland: | Employees of the mineral sector with no tax liability to Greenland
in the previous 6 months:
a flat rate regime in general without deductions and allowances. | 35% |
Employer’s obligation: | Payment of labour market contribution of gross salary | 0,9% |
Depreciation allowance
Type | Effect | Amount |
|---|---|---|
Buildings | Straight line | Up to 5% |
Ships and planes | Straight line | Up to 10% |
Acquired mineral licence | Straight line | 25% each year for 4 years (*a) |
Operating equipment | Declining balance | Up to 30% |
Operating equipment | Acquisition costs below DKK 50,000 | Up to 100% |
Acquisition costs below DKK 100,000 (*b) | Up to 100% | |
*a If the licence period is shorter than 4 years, at the date of purchase, the depreciation allowance is the purchase price divided equally over the remaining licence period
*b Only applies to individuals receiving income from independent business activities
Mineral royalty
Mineral | Type | Amount |
|---|---|---|
Minerals, other than REE, uranium and gemstones | Sales royalty | 2.5% |
REE (*c) | Sales royalty | 5.0% |
Uranium (*d) | Sales royalty | 5.0% |
Gemstones | Sales royalty | 5.5% |
Surplus royalty – when a profit margin exceeds 40% | 15.0% |
*c Corporate tax and corporate dividend tax may be offset against sales royalty
*d Corporate tax and corporate dividend tax may not be offset against sales royalty
*e Corporate tax and corporate dividend tax may not be offset against sales royalty or surplus royalty
