A corporation is resident in Greenland for tax purposes if it is registered in the Danish Companies Register with its principal seat of business in Greenland or if it has its effective seat of management in Greenland. The effective seat of management is typically the place where the management decisions concerning the company’s day-to-day operations are made.
Permanent establishment (PE)
Non-resident companies are liable to tax in Greenland on business profits derived through a PE in Greenland. Generally, Greenland may be assumed to rely on the principles of the Organisation for Economic Co-operation and Development (OECD) model tax treaty in the determination of whether a PE exists. There is virtually no published practice on the issue. Apart from income from a PE, foreign companies are tax liable on income in connection with the exploration and exploitation of oil, gas, and minerals, regardless of whether a PE exists. This includes all activity ultimately serving the extractive industries, including all kinds of subcontractors and service providers to the industry.