Taxation in Greenland

Skat i Grønland
The Greenlandic income tax system is a taxation at source system, in which your employer withholds part of your income for tax payment. Here you can read more about the taxation rules in Greenland.
Tax liability in Greenland

In Greenland you may have full or limited tax liability, depending on how long you stay in the country. 

Full tax liability

If you live in Greenland or stay in the country for more than six months, you have full tax liability. This means that you must specify and be taxed on all your sources of income, whether these are in Greenland or abroad.

When you are fully tax-liable, you will receive an annual statement from the Tax Agency each year with a calculation of your residual or excess tax.

Limited tax liability

If you stay for less than six months in Greenland, you will be subject to limited tax liability. This means that you only pay income tax on your income in Greenland.

When you have limited tax liability, you will not receive an annual statement with a calculation of your residual or excess tax.

A and Β tax

The most common forms of taxation are A and B taxes, which are paid on your A income and B income, respectively:

A-tax

A-tax, or taxation at source, is the tax you pay on your ‘A’ income. A income might for example include:

  • The salary your employer pays you
  • Your salary as a freelancer, e.g. as a translator
  • Board fees
  • Pensions

A tax is calculated on the basis of your tax card and is deducted by your employer

B-tax

B-tax is the tax you pay on your ‘B’ income. B income might for example include:

  • Income from self-employment
  • Student grants
  • Interest
  • First sales of products from hunting, trapping and fishing

B-tax is based on your provisional assessment of your income; you are sent bills for ten instalments per year.

Provisional tax assessment and the tax card

Provisional tax assessment is normally applicable only to fully taxable citizens. Contact the local tax office to make your provisional assessment and receive your tax card.

Your tax card will be created on the basis of:

  • Your provisional tax assessment
  • Your deductions
  • The municipality’s rate of taxation

You will receive your first tax card from the local tax office. After that, it will be automatically sent each December to the address at which you are registered with the National Registry. If you lose your tax card, you must contact the Tax Agency to obtain a new one.

Tax returns and final settlement

Your tax return form will be pre-printed by the Tax Agency on the basis of income information submitted by your employer. If you wish to change or modify your tax returns, you can do so online at the Tax Agency’s website, or you can contact the local tax office.   If you do not have any changes or modifications, you do not have to do anything.

Your tax returns must be submitted to the Tax Agency no later than 1 May in the year following your income year.

 

Final statement

You will receive a final statement showing whether you owe outstanding taxes or are due a tax rebate. The final statement will be sent at the end of August in the year after your income year.

Double taxation agreements

Double taxation agreements ensure that you only pay income tax in the country in which you work.

Greenland has entered into double taxation agreements with:

  • Denmark
  • Faroe Islands
  • Iceland
  • Norway

You can read more about the individual double taxation agreements in at Nordisk eTax, or you can contact the tax authorities in your country of residence to hear about the rules for double taxation with Greenland.

Taxation rules in relation to Sweden or Finland

Greenland has not entered into a double taxation agreement with Sweden or Finland. This means that the tax authorities in these countries can charge income tax for work done in Greenland, in addition to the tax paid in Greenland.

If you live in Sweden or Finland and are still employed and paid by your usual employer, who is not resident or permanently established in Greenland, the following rules apply:

If your stay does not exceed 14 days, you are not liable to pay income tax in Greenland. You will then only have to pay tax on your income in the country in which you are employed.

If your stay exceeds 14 days, you are liable to pay income tax in Greenland. You will then have to pay tax on your income both in Greenland and in the country in which you are employed.

Contact the relevant tax authorities to hear more about the applicable tax rules.

Nordisk eTax

Nordisk eTax is a collaboration between the tax authorities in the Nordic countries. Here you can find information about taxation rules, double taxation agreements, etc., and the contact information for all tax authorities in the Nordic countries.

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