Greenland and New Flat-Rate Tax Regime
Greenland’s elected officials have come to an agreement on a flat-rate regime for inbound expatriates in certain industries.1
The most important change compared to the draft bill we reported on in Flash International Executive Alert 2010-10 (14 January 2010) is that the flat tax rate is 35 percent – as opposed to 30 percent that was proposed in the first draft. Furthermore, it is important to note that the 35-percent flat-rate regime will apply for taxes from income year 2011 (the first draft for the 30-percent flat-rate regime was proposed to apply for taxes from income year 2010). And, finally, a few other minor details have been modified.
The purpose of this new regime is to simplify the tax administration for those foreign employers with taxable personnel in Greenland. It appears, however, that such employers, in fact, may experience additional administrative burdens as they still have to comply with their administrative obligations, including that employers or their representatives/advisers must be physically present in Greenland each month when the employer’s mandatory monthly and annual withholding tax report is prepared.
If your company requires any assistance in this regard, it is advisable that you contact your local IES professional or Per Oertoft Jensen, IES partner with the KPMG International member firm in Denmark and head of KPMG’s Greenland Tax Desk (tel. +45 3818 3239 or e-mail: email@example.com).