Taxpayers are allowed to credit foreign taxes paid on income earned outside Greenland against the Greenlandic tax liability, which is limited to the amount of Greenland tax applicable on such foreign income. However, the tax relief may be limited to relief offered by a double tax treaty, if it is applicable.
Below is a summary of the available methods for various income tax streams based on domestic law.
The credit column shows the type of foreign tax credit granted when the receiving country receives a payment. Four abbreviations are used for the type of foreign tax credit available:
- NC means no credit but foreign withholding taxes can be deducted.
- OC means ordinary credit, i.e., credit for foreign withholding taxes (e.g., withholding taxes).
- IC means indirect credit, i.e., credit for underlying corporate taxes as well as foreign withholding taxes.
- ND means no credit and no deduction for any foreign withholding taxes incurred.