Law On The Conclusion Of Additional Agreement To The Danish-Greenlandic Double Taxation Agreement

Original Language Title: Lov om indgåelse af tillægsaftale til den dansk-grønlandske dobbeltbeskatningsaftale

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=122825

Overview (table of contents) Annex 1 The full text of the Law on the conclusion of additional agreement to the Danish-Greenlandic double taxation agreement

WE, MARGRETHE the SECOND, by the grace of God Queen of Denmark, do indeed:

The Danish Parliament has adopted and we know Our consent confirmed the following law:

§ 1. Additional agreement of 19. August 2008 to the between the Danish Government and the Greenland agreement reached by 18. October 1979 to avoidance of double taxation with respect to taxes on income and on capital, as well as for assistance in tax matters can be accepted. The supplementary agreement is annexed to this law.

(2). The amendment shall enter into force and shall apply in accordance with the provisions of article 8 of the agreement additional.

§ 2. The law shall enter into force on the day after publication in the Official Gazette.

§ 3. The law does not apply to the Faroe Islands and Greenland.
Given at Amalienborg, the 19. December 2008 MARGRETHE r./Kristian Jensen Annex 1

Additional agreement to the Danish-Greenlandic double taxation agreement

Additional agreement to the between the Danish Government and the Greenland agreement reached by 18. October 1979 for the avoidance of double taxation with respect to taxes on income and on capital as well as on assistance in tax matters.

The Danish Government and the Greenland, have agreed upon the following:

Article 1

In article 2 shall be amended as follows:

1. Paragraph 1, 2. sentence shall be deleted.

2. Paragraph 3 shall be deleted and replaced by:

» The existing taxes to which this agreement applies, in particular:

For the case of Denmark:









1.





income tax to the State;







2.





municipal income tax.









For Greenland shall be:









1)





national treasure;







2)





special national treasure;







3)





municipal income tax;







4)





from withholding tax;







5)





joint municipal tax. '









Article 2

In article 5, paragraph 2, subparagraph (g)) and (h)), the term ' 3 months ' is replaced by ' 6 months '.

Article 3

In article 10 shall be amended as follows:

1. Paragraph 3 shall be deleted and replaced by:

' 3. If the paying company is resident in one part of the Kingdom and the beneficial owner of the dividends is resident in the other part of the Kingdom, the tax must be imposed in the former part of the Kingdom, without prejudice to paragraph 4 and 5 shall not exceed:















(a))





 









0 per cent of the gross amount of the dividends if the beneficial owner is a company (the parent company), which directly owns at least 25 per cent of the capital of the company paying the dividends (the subsidiary), and have owned this part of the capital in an uninterrupted period of at least one year within which the proceeds are distributed, and







(b))





15 per cent of the gross amount of the dividends in all other cases.









This paragraph shall not affect access to tax the profits of the company, of which the dividend is paid. '

2. Paragraph 5 shall be deleted and replaced by:

' 5. For as long as it's after the Greenlandic legislation is possible for companies to fully deduct paid out dividends from taxable income, can Greenland taxing dividends paid from companies who are resident or registered in Greenland, but if the beneficial owner of the dividends is resident in Denmark, the tax must be imposed, does not exceed 35 per cent of the gross amount of the proceeds. '

Article 4

Article 15 shall be deleted and replaced by:

' Article 15

Personal services

1. subject to the provisions of articles 16, 17 and 18 causes second, gage, wages and other similar remuneration for personal services, received by a person who is resident in one part of the Empire, taxable only in this part of the Kingdom, unless the work is carried out in the second part of the Kingdom. Is the work done there, the remuneration received for it, be taxed in that other part of the Kingdom.

2. Notwithstanding the provisions of paragraph 1, remuneration received by a person who is resident in one part of the Kingdom, for personal work done in the second part of the Empire, only be taxed in the first-mentioned part of the Kingdom, if:















(a))





 









recipient residing in the other part of the Kingdom in one or several periods which together do not exceed 183 days in a 12-month period commencing or ending in the fiscal year concerned, and







(b))





the remuneration is paid by, or on behalf of, an employer who is not a resident of the second part of the Kingdom, and







(c))





remuneration shall not be the responsibility of a permanent establishment which the employer has in the other part of the Kingdom, and







(d))





There is no question of labour rent.









However, the remuneration paid by a public authority in one part of the Kingdom, including a corresponding local authority, to a natural person for work done in the second part of the Empire, be taxed in that other part of the Kingdom, unless the duration of residence in that other part of the Kingdom does not exceed 60 days in context and the person concerned during this stay continues to be dealt with, and vederlagt of the usual employer.

3. Notwithstanding the preceding provisions of this article, remuneration for personal work, which is carried out aboard a Danish or Greenlandic ship, be taxed in the part of the Kingdom, where the undertaking which operates the ship, has its real leadership. If the undertaking has its real leadership in one part of the Empire, while the ship is stationed with service throughout the year in the other part of the Kingdom, remuneration for personal work on board the ship only be taxed in that other part of the Kingdom. For the purposes of this provision, be deemed to be a foreign ship which is transported by the enterprise on the so-called bareboat basis, as Danish, Greenlandic, ship respectively. Remuneration for personal work in service conditions, performed on board an aircraft as an enterprise in international traffic, may be taxed in that part of the Empire, where the enterprise has its real leadership.

4. Notwithstanding the preceding provisions of this article, remuneration for work performed on board a ship registered in the Danish International ship register, or a ship which is registered in the Greenlandic nettoløns directory, only taxed in the part of the Kingdom, if the nationality of the ship. This provision shall only apply, if the work is carried out on board a ship that is used for the purpose for which qualify for tax reduction after both the Danish rules for work on board ships in the Danish International ship register as the Greenland regulations for work on board ships in kalaallisut nettoløns directory. For the purposes of this provision, shall be treated as a foreign ship which is transported on so-called bareboat basis of a Danish, Greenlandic, undertaking, respectively, with the ship, registered in the Danish International ship register, respectively, Greenlandic nettoløns directory.

5. In cases where immigration briefly delayed due to household goods moving, traffic conditions or similar, and work therefore is not carried out in the part of the Kingdom where the service relationship consists, gage, wages and similar remuneration are taxed in that part of the Empire, where the service relationship consists. In addition, taxation in this part of the Kingdom take place when immigration is delayed due to short-term course participation, provided that the remuneration paid to civil servants or employees of companies in whole or in part under the Greenland Home Rule. Can this part of the Kingdom because of its legislation does not implement taxation, the other part of the Kingdom to tax remuneration. '

Article 5

Article 21 (a) shall be deleted and replaced by:

' Article 21 (a)

Off-shore company

1. the provisions of this article shall apply notwithstanding any other provision of this agreement.

2. A person residing in one part of the Empire, as outside the coast of the second part of the Kingdom of doing business related to study or exploitation of the seabed or subsoil or their natural occurrences in this second part of the Kingdom, must, without prejudice to paragraph 3 and 4 of this article, with regard to this undertaking is considered to operate in the other part of the Kingdom through a permanent establishment there.
3. the provisions of paragraph 2 and paragraph 6, point (b) shall not apply where the company is engaged in one or more periods which together do not exceed 30 days during a 12-month period, which begins or ends in the tax year in question. For the purposes of this paragraph, however, the following apply:















(a))





 









business carried on by an enterprise associated with another enterprise shall be deemed to be carried on by the undertaking, it is associated with, if the company concerned to a significant degree is the same as the company for which the latter undertaking exercises;







(b))





two enterprises shall be deemed to have established affiliation with each other, if





 









in)





 









one enterprise participates directly or indirectly in the management, control or capital of the other enterprise, or





 









(ii))





 









the same persons participate directly or indirectly in the management, control or capital of both enterprises.









4. Income received by an undertaking in the one part of the Kingdom for the transport of supplies or personnel to a region or between regions where the company is going on related to study or exploitation of the seabed or subsoil or their natural occurrences in the other part of the Kingdom, or in the operation of tugboats or other auxiliary vessels attached to such an activity, can only be taxed in the part of the Kingdom where the undertaking is established. This provision shall not apply if the vessel or aircraft is powered by a permanent establishment within the meaning of article 5 of this agreement.

5. a) subject to paragraph (b) of this paragraph, salaries, and other similar remuneration, as a person living in one part of the Kingdom receives in respect of paid work related to study or exploitation of the seabed or subsoil or their natural occurrences in the second part of the Empire, be taxed in that other part of the Kingdom, to the extent that work is performed outside the coast of this country. Such remuneration may however only be taxed in the first-mentioned part of the Kingdom, where the work is performed outside the coast for an employer who is not a resident of the second part of the Empire, and provided that the work is carried out in one or several periods which together do not exceed 30 days during a 12-month period, which begins or ends in the tax year in question.













(b))





 









Wages and other similar remuneration, as a person living in one part of the Empire up wears on the occasion of the contract work performed on board a ship or aircraft used for the transportation of supplies or personnel to or within an area where the company is going on related to study or exploitation of the seabed or subsoil or their natural occurrences in a part of the Kingdom , or for contract work performed on board tugs or other auxiliary vessels attached to such an activity, can only be taxed in the part of the Kingdom, where the recipient resides, unless the employer is resident in the other part of the Kingdom. In such cases, wages and other similar remuneration are taxed in the other part of the Kingdom.







6. Profit as a person living in one part of the Empire up wears through the sale of:









(a))





rights to study or exploitation; or













(b))





 









possessions, who are in the other part of the Empire, and which are used in connection with the investigation or exploitation of the seabed or subsoil or their natural occurrences in this second part of the Kingdom; or













(c))





 









shares whose value entirely or for the main part, directly or indirectly derived from such rights or property or from such rights and possessions seen during a may be taxed in that other part of the Kingdom.









In this paragraph, the term ' rights to study or exploitation ' rights to the mineral and other natural resources, which must be extracted by the investigation or the exploitation of the seabed or subsoil or their natural occurrences in the other part of the Kingdom, including rights to interests in or benefits of such mineral and other natural occurrences. '

Article 6

Article 22, paragraph 3 shall be deleted and replaced by:

' 3. If a person who is domiciled in a part of the Kingdom, receives income or owns property which, in accordance with the provisions of this agreement may be taxed only in the second part of the Kingdom, the first part of the Kingdom may include this income or wealth in the tax base, but shall be in income taxes or property taxes allow the deduction of the share of income taxes or property taxes, which can be attributed to the income or assets of the arising from the other part of the Kingdom. '

Article 7

Transfer to Greenland of pension schemes with ongoing disbursements drawn in Danish pension or life insurance companies for people who have tax home in Greenland in accordance with article 4 of the between the Danish Government and the Greenland agreement reached by 18. October 1979 for the avoidance of double taxation with respect to taxes on income and on capital as well as on assistance in tax matters, shall not be treated as out-and payment after pension taxation Act section 1. It is a condition that is not in Denmark has been given credit for deposits to the relevant pension schemes or bortseelsesret for employer's contributions to the schemes. It is a further condition that the transfer to Greenland shall take place not later than 31 December. December 2011.

Article 8

(1). This supplementary agreement shall enter into force on the day on which both parties have signed it.

(2). However, amendments shall enter into force at the earliest on the day on which the Danish Parliament to accede to the agreement.

(3). The amendment shall take effect as from 1 January 2002. January 2009

(4). Article 7, however, have effect from and including 1. January 2008.

(5). In cases where a Greenlandic company has distributed dividends in 2007, can Greenland tax the portion of the dividend that the company distributes in 2009-2012, and that form an amount up to what is paid in 2007, with 40.6% in 2009, 39.2% in 2010, 37.8% in 2011 and 36.4% in 2012.

Article 9

This supplementary agreement shall remain in force so long as the agreement of 18. October 1979 is in force.

Done at Ilulissat, the 19. August 2008 in duplicate in Danish and two copies in kalaallisut, which texts have equal validity.









For the Government of Greenland





For the Danish Government







Aleqa Hammond





Kristian Jensen