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5.1. Tax Base for Resident Entities

Resident companies are subject to corporate tax on their worldwide income (except real estate income earned from property located outside Greenland) earned from sources within and outside Greenland.

Capital gains on disposal of stocks, real estate, financial contracts i.e. derivatives and depreciable assets are subject to capital gains tax. Unrealised gains and losses are not taxable in Greenland.

Transfer of licenses under Mineral Resources Act to third parties requires prior approval from the appropriate authority. Such transfer can be exempt from tax, subject to certain conditions.

Dividend income is subject to tax as ordinary income. Further, dividends received from a foreign company are exempt from tax provided the recipient resident company holds at least 25% of the shares in the distributing company for at least 1 year.