Greenland

Overview

Last reviewed - 02 June 2020

Greenland is located east of the Canadian arctic between the Atlantic and the Arctic Ocean, and, although Greenland physically is a part of the North American continent, Greenland has had strong cultural connections with Europe (first Norway and later Denmark) for more than a millennium. Greenland is the largest island in the world, but, with a population of only about 55,860 (2017), Greenland is the least densely populated territory in the world.

Greenland is an autonomous country within the Kingdom of Denmark. Greenland is divided into four local municipalities, with Nuuk as the capital. Since 2009, Greenlandic has been the official language. However, in practice, Danish is still much used in the administration. The currency is the Danish krone (DKK).

After being ruled by Denmark/Norway for centuries, Greenland became a Danish colony in 1814 and was included in Denmark under the Danish constitution in 1953. Greenland joined the European Union (EU) in 1973 as a part of Denmark, but withdrew separately from the European Union in 1985. Greenland has no separate membership in the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO), but is included by way of Denmark’s membership of these organisations. Greenland got home rule from Denmark in 1979, and, in 2009, the Self-Government Act transferred more powers from the Danish to the Greenlandic government. According to the Act, Greenland can assume control over policing, the judicial system, company law, accounting, and auditing; mineral resource activities; aviation; law of legal capacity, family law, and succession law; aliens and border controls; the working environment; and financial regulation and supervision. Greenland’s tax system has been autonomous from Denmark since 1979.

PwC provides Greenlandic services from the office in Copenhagen, Denmark. We serve a significant proportion of clients within the oil & gas and mineral industries and have a soundly based portfolio of clients, particularly within these sectors. Through our experience, our professionals have developed a broad expertise within the oil and mineral sectors and are able to provide unique services. We have also, on some occasions, managed to negotiate law changes with the Greenlandic authorities on behalf of our clients.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 26.5 (i.e. 25% + 6% surcharge)
Corporate income tax (CIT) due dates
CIT return due date No later than four months following the end of the income year, meaning 1 May for companies using the calendar year as the income year. However, this is postponed to 15 June if the company files via the official web portal.

Due to COVID-19, the deadline for filing the 2019 corporate tax return has been extended to 1 July 2020 (electronic filing).
CIT final payment due date 20 November of the following year.
CIT estimated payment due dates NA
Personal income tax (PIT) rates
Headline PIT rate (%) 10, plus municipal tax
Personal income tax (PIT) due dates
PIT return due date 1 May
PIT final payment due date Underpayment of tax is payable in three instalments due on 20 September, 20 October, and 20 November.
PIT estimated payment due dates NP
Value-added tax (VAT) rates
Standard VAT rate (%) NA
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: 36 to 44 / NA / 30;
Non-resident: 36 to 44 / NA / 30
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) 31.8
Individual capital gains tax rate (%) NA
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NA
Inheritance and gift tax rates
Inheritance tax rate (%) NA
Gift tax rate (%) Gifts are taxable as ordinary income.

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.