Greenland

Employment expenses

Generally no expenses are deductible from employment income.

Personal deductions  

Alimony

Paid alimony is generally deductible for Greenlandic tax purposes under the following circumstances:

• The alimony is paid to a former spouse or children due to divorce or separation, provided that the provider of the alimony does not live at the same address as the receivers. 
• The alimony is paid to spouse or children who are separated from the provider of the alimony. 
• The alimony is paid to children outside of marriage, who do not live at the same address as the provider of the alimony. 

Further, the payments of alimony are only deductible for Greenlandic tax purposes if the payer has a legal obligation to pay the alimony, and the payments are recognised as taxable income for the persons receiving the alimony.

Charitable contributions

Charitable contributions are not deductible for Greenlandic tax purposes.

Childcare expenses

Childcare expenses are deductible for Greenlandic tax purposes under the same rules as described above regarding alimony.

Education expenses

Education expenses are not deductible for Greenlandic tax purposes. However, most education in Greenland is tax funded and free of student payments.

Healthcare expenses

Healthcare expenses are not deductible for Greenlandic tax purposes. Generally, however, the Greenlandic healthcare system is tax funded and free of charge for the patients.

Life insurance premiums and contributions to pension funds

Payments to life insurance premiums and contributions to pension funds are basically deductible for Greenlandic tax purposes, provided that the payments are made to a Greenlandic pension fund or insurance company. However, deductibility for Greenlandic tax purposes is also subject to several other conditions being fulfilled.

Mortgage interest expenses

Interest expenses are deductible for Greenlandic tax purposes in the year of accrual. However, if the debtor is unable to pay the interests, the interests are only deductible for Greenlandic tax purposes when paid. Interests regarding property located outside of Greenland are not deductible for Greenlandic tax purposes.

Taxes paid

Paid taxes are not deductible for Greenlandic tax purposes. However, one should be aware of any obligations or rights in DTTs.

Standard deductions

Fully tax liable individuals and individuals with limited tax liability from employment and employment related income are entitled to an allowance of DKK 48,000 a year (2016 amount). Persons with full tax liability to Greenland are further entitled to an extra allowance of DKK 10,000 a year (2016 amount). The amounts can be subject to adjustment every year, but have been stable for a number of years.

Foreigners who are subject to the expat flat-tax regime of 35% are not entitled to an allowance on their employment income, but have access to the standard allowance on other income.

Personal allowances

There are no personal allowances or exemptions for Greenlandic tax purposes.

Business deductions

The same expenses that are deductible for corporate tax purposes are also deductible for personal business purposes. See the Deductions section in the Corporate summary for more information on business expenses.

Losses

Business losses can be carried forward for a five-year period. This includes capital losses to the extent they form part of the income. Capital losses on financial contracts may only be offset against capital gains on financial contracts.