The income tax rate is dependent on which municipal subdivision you belong.

 

Tax municipality

Municipality No.

Municipality tax rate

National Tax

Joint municipal tax:

(§ 63, stk. 2)

Total Tax rate %

Kommune Kujalleq

31

28

10

6

44

Kommuneqarfik

Sermersooq

32

26

10

6

42

Qeqqata Kommunia

33

26

10

6

42

Qaasuitsup Kommunia

34

28

10

6

44

 

If you are not a part of the above listed municipal subdivisions, then you belong to a division established by the Tax Agency.

 

Tax municipality

Municipality No.

Special National Tax

National Tax

Total Tax rate %

Skattestyrelsen

20

26

10

36

 

Gross tax: 35 %

The Gross tax scheme applies to any project, construction, installation or assembly work that takes place outside the four main municipalities.

The Gross tax scheme also applies if you perform tasks related to prospecting, exploration or exploitation of mineral resources in accordance with sections § 72a and § 72 b.

As an employer, you must be registered in GER as soon as you commence operations and are responsible for reporting and withholding income tax immediately.

You can find a guide to tax filing and the tax filing form here.

Payments for gross tax can be made to Bank of Greenland using this Swift address / BIC: GRENGLGX

When paying from outside Greenland, please use this IBAN number: GL0964710001002616.

When paying the gross tax, please remember to apply the GER number as reference.

 

Company tax rate: 30 %

The company tax rate is generally 30%, but there will be a surcharge of 6%, if you have earnings above 99 kr. cf. section § 27 paragraph. 1 of Act no. 11 of 2 November 2006 on the management of taxes.

 

Company tax rate with surcharge: 31,8%

 

Dividend tax - depending on which municipality you belong: 42% – 44%

Personal deduction cf. section § 67,1: DKK 48.000.

Standard deduction cf. section § 21,1: DKK 10.000.

Fixed deduction for limited tax employees cf. section § 2,2: DKK 1.000.

Tax-free B-income cf. section § 20,2: DKK 5.000.

 

The income tax, for persons with full tax Liability is:

     A-income

+   B-income

-    Deduction / standard deduction

=   Taxable income

-    Personal deduction

=   gross income minus income deductions minus income tax reliefs

 

The income tax is calculated with a levy rate of the gross income minus income deductions minus income tax reliefs.