Key Benefits:
Promise of the conclusion of an additional agreement to the Danish-Greenlandic double tax agreement
We, by God's grace, the Queen of the Danes, do our thing.
The parliament has adopted the following law, and we know that the following law has been approved by Parliament's consent :
§ 1. Suppre-up of 19. This August 2008, between the Danish Government and the Greenland National Government, signed the agreement of 18. In October 1979, the avoidance of double taxation as regards income and property taxes, as well as on aid in tax matters may be joined. The agreement is listed as annexes to this Act.
Paragraph 2. The agreement shall enter into force and apply in accordance with Article 8 of the Additional Agreement.
§ 2. The law shall enter into force on the day following the announcement in the law.
§ 3. The law does not apply to the Faroe Islands and Greenland.
Appendix 1
Additional agreement to the Danish-Greenlandic double tax agreement
Agreement between the Danish Government and the Greenland National Government concluded agreement of 18. In October 1979, the avoidance of double taxation as regards income and property taxes, as well as aid in tax matters.
The Danish Government and the Greenland National Government have agreed on the following :
ARTICLE 1
Article 2 shall be amended as follows :
1. Slice one, two. period, deleted.
2. Section 3 is deleted and in place the following :
The applicable taxes on which the agreement applies are in particular :
In Denmark's case :
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1.
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income tax for the State ;
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2.
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Communal income tax.
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In the case of Greenland :
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1)
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countryman ;
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2)
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special countryman ;
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3)
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municipality tax ;
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4)
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yield tax ;
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5)
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joint local authority tax. "
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ARTICLE 2
in Article 5 (2) (g) and (h), ' 3 months ` shall be replaced by ' 6 months `.
ARTICLE 3
Article 10 shall be amended as follows :
1. Section 3 is deleted and in place the following :
" THREE. If the paying company is settled in one part of the kingdom and the rightful owner of the proceeds resides in the second part of the kingdom, the tax imposed in the first part of the kingdom shall not exceed :
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0%. of the gross amount of the proceeds where the rightful owner is a company (parent company) which directly owns at least 25%. of the capital of the undertaking which pays the profit (subsidiary), and has owned this part of the capital during an uninterrupted period of at least one year within which the yield is imploded and
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b)
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15%. of the gross amount of the yield in all other cases.
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This paragraph shall not affect access to taxing the company from profits of which the yields are paid. ` ;
2. Pieces 5 shall be deleted and in place the following :
" FIVE. As long as it is possible to deduciate from the taxable income companies fully deduced from the taxable income, Greenland may tax returns which are paid from companies resilient or registered in Greenland, but where it is : the rightful owner of the yield is resident in Denmark, the tax to be imposed shall not exceed 35%. of the gross amount of the proceeds. `
ARTICLE 4
Article 15 shall be deleted and in place the following :
' Article 15
Personal services
Subject to the provisions of Articles 16, 17 and 18, other, salary and other similar remuneration for personal services, carried out by a person resident in one part of the realm shall be taxed only in that part of the realm, except where : the work has been carried out in the second part of the realm. If the work has been carried out there, it may be taxed in this second part of the kingdom.
Notwithstanding the provisions of paragraph 1, payment made by a person resident in one part of the kingdom for personal work carried out in the other part of the realm shall be taxed only in the first part of the kingdom, if :
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the consignee residing in the other part of the kingdom in one or more periods which together do not exceed 183 days in a 12-month period beginning or ends in that fiscal year, and
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b)
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the remuneration shall be paid by or for an employer not resisted in the second part of the kingdom ; and
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c)
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the remuneration is not incumriled to a fixed operation by the employer in the other part of the kingdom ; and
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d)
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they are not work outlet.
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However, payment due to a public authority in one part of the kingdom, including a local authority belonging to a person for work carried out in the second part of the realm, may be taxed in that other part of the kingdom, except where the party is to be subject ; the duration of this second part of the kingdom does not exceed 60 days in the context and the person concerned shall continue to be employed and paid for by the customary employer.
Notwithstanding the previous provisions of this Article, remuneration for personal work carried out on board a Danish or Greenlandic ship shall be taxed in the part of the kingdom where the undertaking which operates the ship has its real management. If the undertaking has its real leadership in one part of the kingdom, while the ship is fixed by service throughout the year in the other part of the realm, payment for personal work on board the ship shall be taxed only in this other part of the realm. For the purposes of this provision, a foreign ship is considered to be charted by the operation of the so-called Basrebo Base, which is the Danish, the Greenlandic vessel. Remuneration of personal employment in service operations carried out on board an aircraft operating in international traffic may be taxed in that part of the kingdom where the enterprise has its real management.
Notwithstanding the previous provisions of this Article, remuneration for work carried out on board a ship registered in the Danish International Shipship register or a ship registered in the Greenland net salary register may be taxed only in it ; part of the realm whose nationality the ship has. This provision shall apply only where the work is carried out on board a ship used for the purpose which meets the conditions of tax reduction, in accordance with the Danish rules for work on board ships in the Danish Internationally Shipship, as the Greenland rules for work on board ships in the Greenlandic net salary register. For the purposes of this provision, a foreign ship is being placed on a carrier which is shipped on the so-called Basreboat basis of a Danish, respectively Greenlandic, undertaking, registered in the Danish Internationally Shipship, respectively Greenlandic, or Greenlandic ; Net salary register.
5. In cases where the relocation of a temporary delay is delayed due to bogardening movements, traffic conditions or the like, and therefore the work has not been carried out in that part of the kingdom where the service is comprised, salary, salary and similar remuneration can be taxed in that part of the kingdom where service ratio is made. Furthermore, the taxation of this part of the realm may take place when relocation is delayed because of short-term courier participation, provided that the remuneration is paid to publicly employed or employed in companies wholly or partly under the Home Deer's Home Government. If this part of the realm is not implemented because of its legislation, then the second part of the realm may tax the remuneration. '
Article 5
Article 21 a is deleted and the following shall be inserted :
' Article 21 a
Off-shore business
The provisions of this Article shall apply, irrespective of any other provision of this Agreement.
2. A person resident in one part of the kingdom, which, outside the coast of the other part of the kingdom, is assigned to the investigation or exploitation of the seabed or subsoil or their natural occurrences in this other part of the realm, must, by Subject to paragraphs 3 and 4 of this Article, with regard to this undertaking, the operation of the second part of the kingdom shall be deemed to operate in the second part of the realm through a fixed operating site.
3. The provisions of paragraph 2 and paragraph 6 (b) shall not apply where the undertaking is exercised for one or more periods which together does not exceed 30 days in the course of a 12-month period commensuring or ending in that region ; tax years. However, where this paragraph is used, the following shall apply :
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the undertaking of an undertaking linked to another undertaking shall be deemed to have been exercised by the undertaking which it is associated with if the undertaking concerned is significantly the same as that of the latter, undertaking shall exercise ;
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b)
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two undertakings shall be deemed to have a fixed association with each other, if :
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the one undertaking shall participate directly or indirectly in the management, control or capital of the other undertaking, or
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The same people shall participate directly or indirectly in the management, control or capital of both undertakings.
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4. Income bearing up of an undertaking in one part of the realm in the transport of supplies or personnel to an area or between areas where there is an undertaking linked to the investigation or exploitation of the seabed or subsoil ; or their natural occurrences in the other part of the kingdom, or from the operation of tow boats or other ancillary vessels attached to such activity, may only be taxed in the part of the kingdom where the undertaking is indigenous. This provision shall not apply where the vessel or aircraft is operated by a firm operating point in accordance with Article 5 of this Agreement.
(a) Without prejudice to the provisions of point (b) of this paragraph, salaries and other similar charges may be paid by a person resident in one part of the kingdom on the basis of a payroll work linked to the investigation or exploitation of the seabed or subsoil or their own. Natural occurrences in the other part of the realm are taxed in this second part of the kingdom, to the extent the work has been carried out outside the coast of this country. However, such remuneration may only be taxed in the first part of the kingdom where the work has been carried out outside the coast of an employer not resisted in the second part of the kingdom, and provided that the work has been carried out in one or more periods, which : together does not exceed 30 days in the course of a 12-month period beginning or ends in that fiscal year.
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Salary and other similar charges, as a person residing in one part of the rice harlot, on board a ship or aircraft used for the transport of supplies or personnel for or within an area in which there is, activities are linked to the investigation or exploitation of the seabed or the subsoil or their natural occurrences in part of the kingdom, or for labor or other ancillary workers attached to such activity, can only : taxed in that part of the kingdom where the consignee is settled, unless the employer is resisted in it ; the second part of the realm. In such cases, wages and other similar charges may be taxed in the second part of the realm.
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6. Proceeding as a person resident in one part of the riget-bearing in the case of the sale of :
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a)
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rights for examination or exploitation ; or
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possessions of the other part of the kingdom and are used for the investigation or exploitation of the seabed or the subsoil or their nature deposits in this other part of the kingdom ; or
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shares whose value is entirely or indirectly arising directly or indirectly from such rights or possessions, or from such rights and possessions, subject to a tax in this other part of the realm.
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In this paragraph, the term 'rights for examination or exploitation' means the rights of mineral and other natural occurrences to be extracted from the investigation or the exploitation of the seabed or subsoil or their nature deposits in it ; part of the kingdom, including rights to shares in, or benefits, of such mineral and other natural occurrences. ` ;
ARTICLE 6
Article 22, paragraph 3, is deleted and the following shall be inserted :
" THREE. Where an individual belonging to a part of the kingdom is bearing an income or an ownership of wealth which, according to the provisions of this Agreement, may only be taxed in the second part of the realm, the former part of the kingdom may include this income or fortune ; in the tax base, but in the income tax or property tax deducted that part of the income tax or the property tax, which may be attributed to the income or fortune derived from the other part of the realm. ` ;
Article 7
Transfer to Greenland of pension schemes with an ongoing payment in Danish pension or life insurance undertakings for persons having a tax base in Greenland in accordance with Article 4 of the Danish Government and Greenland ; the negotiated agreement of 18. In October 1979, for the avoidance of double taxation as regards income and property taxes, as well as aid in tax matters, is not treated as a basis for payment in accordance with the provisions of Title 1 of the Pension Act. It is a condition that not in Denmark has granted deductions on payments to the pension schemes concerned or the suspension of the employer ' s contribution to the schemes. It is now a condition that the transfer to Greenland takes place at the latest by 31. December 2011.
ARTICLE 8
Paragraph 1. This Additional Agreement shall enter into force on the day that both parties have signed.
Paragraph 2. However, the interim agreement must come into force on the day when the Danish People's Things are acceding to the agreement.
Paragraph 3. The agreement has the effect of and with 1. January 2009
Paragraph 4. However, Article 7 shall take effect from 1. January 2008.
Paragraph 5. In cases where a Greenlandic company has extracted the profits in 2007, Greenland may tax the portion of the proceeds which the company unrails in 2009-2012, which amounts to a sum up to what is proposed in 2007, with a 40,6% rate. In 2009, 39.2%. In 2010, 37,8%. In 2011 and 36,4%. In 2012.
Article 9
This supplementary agreement must remain in force as long as the agreement of 18. October 1979 is in force.
Done at Ilulissat, 19. August 2008 in two copies in Danish and two copies in Greenlandic, which are equally valid.
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For Greenland national government
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For the Danish Government
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Aleqa Hammond
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Kristian Jensen
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