Greenland

There are no tax credits or tax incentives in Greenland in general. However, current oil licence holders do, in their surplus royalty basis, qualify for an extra deduction in their capital and operating expenditure of 21.75%, 29.25%, and 36.75%, respectively, plus the Danish discount rate, provided that the surplus royalty basis never has been positive. This is akin to the so-called ‘uplift’ known to other oil tax regimes.

Newer licences are subject to different royalty regimes, including different ‘uplift’ regimes. Please refer to Oil companies in the Taxes on corporate income section.

It is also possible for mineral licence holders to get a tax holiday from the corporate tax. However, this is only possible if the corporate tax is replaced entirely by other forms of fiscal levies or duties that provide the Greenlandic government with at least the same income as the corporate tax would have done.

Foreign tax credit

According to Greenlandic tax law, relief is generally available to credit foreign tax paid on non-Greenlandic source profits against the Greenlandic tax on the same profits. If relief is offered by treaty, the level of relief is capped at the level offered by the treaty. There are only treaty provisions to this effect with Canada, Denmark, the Faroe Islands, Iceland, and Norway.