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8.2.2. Withholding Taxes

The withholding tax rates differ as per governing municipality.

The withholding tax rates levied on income received / derived by the non-residents from sources within Greenland, unless reduced under a tax treaty are as below:

Dividend

Tax is withheld on dividends paid out to non-residents at rates which vary depending on the municipality where the payer is established. The withholding tax rates range from 42% to 44%. The dividend withholding tax rate is 36% for companies holding a license under the Mineral Resources Act. Note that dividends distributed are deductible to the payer for corporate tax purposes.

Interest

No tax is withheld on interest paid by Greenland resident entities to non-residents.

Royalty Copyright

Tax is withheld at the rate of 30% on royalties paid to non-residents.

Royalty Patent

Tax is withheld at the rate of 30% on royalties paid to non-residents.

Royalty Trademark

Tax is withheld at the rate of 30% on royalties paid to non-residents.

Service Management

There is no withholding tax on management fees paid to non-residents.

Service Technical

There is no withholding tax on technical service fees paid to non-residents. If the provision of services creates a permanent establishment in Greenland, then the income derived by the permanent establishment is assessed to tax in Greenland as business income.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains
31.8%
Dividends
44%
Interest
0%
Royalty Copyright
30%
Royalty Patent
30%
Royalty Trademark
30%
Sales
0%
Service Management
0%
Service Technical
0%

* Rates are current as of 05 February 2023