Non-resident entities operating inthe Greenland through a permanent establishment ('PE') are subject to tax on income sourced from the Greenland.
Non-resident entities deriving income from the source in the Greenland without a PE are subject to withholding tax ('WHT') on their income (See sec. 8.2.2. below for tax rates). However, capital gains are not subject to WHT in Greenland.
Non-resident companies deriving income from operations of prospecting and exploration of oil, gas and minerals are subject to tax in Greenland regardless of the existence of a PE, including activities of subcontractors and service providers serving the extracting industries.
However, license for exploitation of mineral resources is granted only to resident public limited companies. In case a PE of a foreign company is engaged in exploitation of minerals in the country then the PE is required to be converted into a public limited company and must obtain a license for the same. Such conversion or transfer of business is considered as a taxable transaction, subject to certain conditions (See Sec. 11.).