Individual - Foreign tax relief and tax treaties

Last reviewed - 31 May 2024

Foreign tax relief

An individual resident in Greenland is entitled to deduct foreign income taxes paid or accrued on foreign-source income from the Greenlandic tax payable up to a maximum of Greenlandic tax paid on that part of the taxable income that is foreign-source income. Relief according to DTTs may be claimed if their provisions are more favourable.

Unutilised credits are not refundable and cannot be carried back or forward.

Tax treaties

Greenland only has DTTs covering employee tax with Denmark, the Faroe Islands, Guernsey, Iceland, Isle of Man, Jersey, and Norway. Additionally, Greenland has exchange of information treaties with a number of small nations, such as Aruba, Bahamas, Cayman Islands, San Marino, Monaco, etc.

Greenland has introduced a limited international general anti-abuse rule whereby a taxpayer will not be granted the advantages of a DTT if it is reasonable to conclude, in light of all relevant circumstances, that granting this advantage is one of the principal aims of the arrangement or transaction, unless it is satisfied that granting the advantage in the concrete circumstances is in accordance with the content and purpose of the provision in question.