Taxation in Greenland
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Taxation in Greenland has differed from the taxes in Denmark since the grant of home rule in 1979.[1] The tax system is relatively simple, based on a flat-rate taxation of labor income and certain capital income.
All citizens of Greenland are subject to personal taxation on the basis of full or limited tax liability. The government tax rate is up to 44%, depending on the municipality of taxation.[2] There are some tax deductions in Greenland. A deduction for foreign workers also exists, and this deduction can be as high as 35%. Deductions are also available to students and parents.
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.