Taxation in Greenland

In Greenland you may have a 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 or 183 days, you have full tax liability. This means that you must specify and be taxed on all your sources of income, whether the money is earned 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 are subject to limited tax liability. This means that you only pay income tax on income earned in Greenland. When you have limited tax liability, you will not receive an annual statement with a calculation of your residual or excess tax.

The most common forms of taxation are ‘A’ and ‘B’ taxes, which are paid on your A-income (income taxed at source) and B-income (income not taxed at source), respectively. 

In the case of A tax, the tax is automatically deducted from your income. 

With B income, you have to keep track of the tax and pay it yourself.

A-tax is a provisional tax, calculated on the basis of what you expect to earn in the coming tax year. Income that counts as A income includes, for example:

• Wages paid by an employer
• Salary as a freelancer
• Pension
• Board fees

The A tax is calculated on the basis of your tax card and is automatically deducted by your employer. At the end of the tax year, the Tax Agency knows your exact A-income and will adjust your tax in accordance with what you have actually earned. If you have paid too little tax during the year, you will get a bill for the amount you owe. This is called residual tax. However, if you have paid too much tax, this is called excess tax. The Tax Agency will automatically refund your excess tax. If you have debt to the public authorities, the debt will first be offset before any payment is made, and you will then receive an offset notice.

B-tax is basically a preliminary tax, but you are responsible for keeping track of how much you need to pay. You also have to take care of paying it yourself. Income that counts as A income includes, for example: 

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

To pay the B tax, you will be sent tax bills in 10 instalments per year, based on your tax returns. Otherwise, the same rules apply with regard to residual tax and excess tax. 

Pre-registration and tax card

Pre-registration is norally only for residents of Greenland who are fully liable for tax. To pre-register and receive your tax card, you must contact your local tax office or access it through Sullissivik (the online citizen service).

Your tax card is calculated based on your pre-registration, your personal deduction and your municipality’s tax rate.

The Tax Agency will calculate your tax returns 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 Sullissivik. If you do not have any changes or modifications, you don't need to do anything.

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

When the tax year is over, you will receive a final statement showing whether you owe residual tax or are due a tax rebate. The final statement will be sent at the end of August in the year after your income year. The final statement contains instructions for paying the residual tax. Any excess tax will be refunded automatically. 

Double taxation agreements are agreements concluded between one or more countries. The agreements ensure that you only pay income tax in the country in which you work. If you come from a country that has a double taxation agreement with Greenland, you will therefore be exempt from paying tax in your own country while you are working in Greenland. 

Among the Nordic countries, Greenland has double taxation agreements with:

• Denmark
• Faroe Islands
• Iceland
• Norway

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

Tax rules in relation to Sweden and Finland

Greenland has not entered into double taxation agreements with Sweden and Finland. This means that the tax authorities in these countries may require tax on work performed in Greenland, in addition to the tax you have already paid in Greenland. This is called double taxation because you are taxed twice on the same income. 

If you are a resident of Sweden or Finland and are still employed by and paid by your usual employer, who is not based or does not have a permanent establishment in Greenland, the following rules apply:

If your stay does not exceed 14 days, you are not liable to pay tax in Greenland. Then you only need to pay tax on your income in the country where you are employed.

If your stay exceeds 14 days, you are also liable for tax in Greenland. In that case, you must pay tax on your income both in Greenland and in the country where you are emplyed.

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

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