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6.5. Deduction of Cross-Border Payments and Non-Deductible Expenses

Expenses incurred for the purpose of business are deductible unless they are specifically disallowed.

Dividends are considered as deductible business expenses for the distributing company. However, if dividend is distributed before the due date of filing of tax return (i.e. 1 May), based on the preceding year's profits, then the deduction can be carried back / claimed from income of the preceding year.

The following general expense types are not deductible or have limited deductibility for tax purposes in Greenland:

  • Charitable contributions
  • Research and development expenses of capital nature
  • Bribes, kickbacks and illegal payments
  • Fines and penalties
  • Interest expense subject to non-fulfillment of conditions (See sec 13.2 below)