Parliament Act No. 7 Of 6 June 2016 Amending Rule Act On Income Tax (Taxation Of Payments To Foreign Pension Schemes)

Original Language Title: Inatsisartutlov nr. 7 af 6. juni 2016 om ændring af landstingslov om indkomstskat (Beskatning af indbetalinger til udenlandske pensionsordninger)

Read the untranslated law here: https://www.global-regulation.com/law/greenland/5961143/inatsisartutlov-nr.-7-af-6.-juni-2016-om-ndring-af-landstingslov-om-indkomstskat%2528beskatning-af-indbetalinger-til-udenlandske-pensionsordninger%2529.html

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Parliament Act no. 7 of 6 June 2016 amending Rule Act on income tax
(Taxation of payments to foreign pension schemes)


Modified repeals, hovedlov replaces information

Change
Parliament Act no. 12 of 2 November 2006 Income Tax

§ 1
In Rule Act no. 12 of 2 November 2006 on income tax, as last amended by the Parliament Act no. 37 of 9 December 2015 is amended as follows:
1. In § 34 added:

"17) payment of life insurance, including disability compensation paid as a lump sum from life insurance and accident insurance when the payment is made within the insurance period agreed maturity, if agreed maturity date is no later than the first policy after the insured's age of 80 years.

18) regular payment of disability benefit when the policyholder can prove that the breakdown of taxable income in Denmark, the Faroe Islands or Greenland has been full or partial deduction or exemption of contributions to the insurance.

19) payment of a lump sum critical illness when the policyholder can prove that the breakdown of taxable income in Denmark, the Faroe Islands or Greenland has been full or partial deduction or exemption of contributions to the insurance. "| || second § 39 paragraph. 1 pt. 1, read:

"1) the schemes shall be set up in an institution located in Greenland and scope of the Insurance Business Act. The schemes can also be created in a life and pension insurance company based in Greenland that have FSA authorization to conduct insurance. "
Third § 39 paragraph. 1, no. 4, read:

"4) Spouse or partner's pension can be awarded to a surviving spouse, divorced spouse or cohabitant. A partner means:

A) a named person who had residence with the deceased at the inauguration, or

B) A person who deceased:

First could have entered into marriage or registered partnership and

Second have made a will in favor of at least the portions of a spouse are entitled. The Will must be established no later than 3 months before the death, and

Third have had joint residence in the last 2 years prior to the death. Or have had joint residence of a continuous period of at least 2 years when the common residence alone has ceased because of institutionalization, including in senior housing or

C) A person who at the time of death, was living with the deceased at the same residence or have had joint residence with the deceased when the common residence alone has ceased because of institutionalization, including in senior housing waiting, have or have had a child with the deceased. "
fourth In § 39 paragraph. 1, repealed no. 7.
5. § 39 paragraph. 2 is amended as follows:

"Paragraph. 2. In the case of life insurance, the insured person being insured and the owner of the insurance. If the insurance is established by agreement between an employee and his employer, and premiums and deposits paid by the employer and employee must be insured and owner of the insurance. "
6th In § 39 paragraph. 3, the words "kr. 6,000 "to" 8,000 kr. "
7th After § 39 added:

"§ 39 a. When calculating the taxable income from payments by a pension or life insurance scheme with continuous life annuity when the pensioner or the policyholder can prove that the breakdown of taxable income in Denmark, the Faroe Islands or in Greenland has been full or partial deduction or exemption of contributions to the scheme.

PCS. 2. Paragraph. 1 applies only when the following conditions are met:

1) The system must be created in a pension fund under the Insurance Business Act or a life and pension insurer FSA authorization to conduct insurance.

2) Old-age pensions can be paid at the age of 60, unless a lower age limit is approved by the tax administration.

3) age pension schemes where benefits are composed of a lifelong part and a supplementary part which is not lifelong, must disbursements from the additional part of the retirement pension does not exceed 50 percent of payments from the lifelong part of the retirement pension.

4) Spouse or partner's pension can be awarded to a surviving spouse, divorced spouse or cohabitant. A partner means:

A) a named person who had residence with the deceased at the inauguration, or

B) A person who deceased:


First could have entered into marriage or registered partnership and

Second have made a will in favor of at least the portions of a spouse are entitled. The Will must be established no later than 3 months before the death, and

Third have had joint residence in the last 2 years prior to the death. Or have had joint residence of a continuous period of at least 2 years when the common residence alone has ceased because of institutionalization, including in senior housing or

C) A person who at the time of death, was living with the deceased at the same residence or have had joint residence with the deceased when the common residence alone has ceased because of institutionalization, including in senior housing waiting, have or have had a child together with the deceased

5) Pension to the surviving spouse, divorced spouse or a cohabiting partner must have a minimum maturity of 10 years.

6) Pension to the deceased's surviving children, including stepchildren, however long run to the children's age of 24 years.

PCS. 3. In the case of life insurance, the insured person being insured and the owner of the insurance. If the insurance is established by agreement between an employee and his employer, and premiums and deposits paid by the employer and employee must be insured and owner of the insurance.

PCS. 4. Are contributions to a plan happened to both taxed and untaxed funds, except in calculating taxable income from such a large share of payments to which the person can demonstrate concern payments taxed. There is not increased by dividends, interest or similar to the proportion relating to payments taxed.
PCS. 5. If the annual life-long performance does not exceed 5,000 kr., Can benefit from the pension schemes referred to in paragraph. 1 and 2 as set up an employment shall be paid as a lump sum.

PCS. 6. An amount equivalent to 2 years of regular payments from pension schemes, as referred to in paragraph. 1 and 2, which is set up in pension funds or life and pension insurance companies which are based in Greenland, and set up an employment may be paid as a lump sum.

PCS. 7. The Government may lay down detailed rules on the part of the payment, in accordance with paragraph. 1 and 2 are exempt from tax. "
8th After § 39a added:

"§ 39 b. Persons in the calculation of taxable income may disregard payments from pension schemes, see. § 39 a paragraph. 1 and 2, if they are not in a taxable income may utilize a deduction for interest rates, cf.. § 15 paragraph. 1, in full, ask to have paid the tax value of an unused deductions.

PCS. 2. The payment under subsection. 1, the following conditions must be met:

1) interest expenses must relate to the acquisition or operation of immovable property situated in Greenland,

2) the loan must be secured by the property

3) person to inhabit the property, and

4) deduction is not in accordance with § 4 d paragraph. 2, could be transferred to a cohabiting spouse.

PCS. 3. The payout can not exceed an amount equal to the proportion of payments from these pension schemes plus the taxpayer's other tax-exempt income in relation to unused interest deduction.

PCS. 4. Payment is made monthly in arrears. Tax Administration carries out concurrently with the issue of the final statement for the income year in which interest deductibility concerns, and by 1 September of the year following the tax year a statement of the paragraph. 1 mentioned payments and pays respectively charge any difference. "
9th After § 40 added:

"§ 40 a. Insurance, whose services in all cases paid for a certain period regardless of the insured's death (guaranteed benefits), but which otherwise meet the requirements of § 39, § 39a or § 40 under the rules for pension with life-long benefits, if the premium for the guarantee does not exceed 10 per cent. of the premium for the entire insurance.
PCS. 2. It is a condition that is not in the policy are deployed other beneficiaries than either the insured 'next of kin' in insurance contract law sense, or the insured's spouse or ex-spouse of the insured's heirs, stepchildren or place children's heirs or a named person in common residence with assured by the insertion, or his heirs. "
10th § 41 shall read:


"§ 41. Deductions for contributions and prizes for the in §§ 39 and 40 of the said arrangements should be attributed to the premium period they cover, like the deduction can not exceed 20 percent of total income in that part of the income year, contributed or the premium relates. For spouses or partners, the deduction may not exceed 20 percent of their total earnings. For self-determined calculation based on an estimated income for an equivalent employed person.

PCS. 2. In calculating an employee's taxable income, no amount of employer paid to the arrangements referred to in §§ 39 and 40.
PCS. 3. Is there an income payment made to a pension scheme with periodic payments, see. § 39, or to an annuity insurance, see. § 40, which exceeds 20 percent of total earnings, see. Paragraph. 2, the tax authorities allow the excess amount is refunded when special circumstances. "
11th In § 43 is deleted. 3-5.
12. § 44 shall read:

"§ 44. In calculating taxable income, returns from life insurance and pension plans.

PCS. 2 pcs. 1 shall not apply to:

1) any of § 39 paragraph. 1, § 39 a paragraph. 1 and 2 and § 40 paragraph. 1 included schemes and other schemes covered by the Pension Tax Act § 53 A.

2) accrue interest on pension schemes in Danish banks, pension funds and life and pension insurance covered by Chapter 1 of the Law on the taxation of pensions etc. and deposits in LD

3) annuity insurance schemes and installment savings for pension purposes, index insurance Index savings, endowment insurance and capital pensions which are covered by Chapter 1 of the Act on the taxation of pensions, etc., and

4) life insurance policies, which only can be paid in the event of the insured's death or disability within the insurance period agreed maturity, if agreed maturity date is no later than the first policy after the insured's age of 80 years.

PCS. 3. The income tax obligation lies with the owner or the person after the death of the owner is entitled to payment of the insurance. The return is calculated as the difference between the insurance capital value of income end of the year plus payments during the year and the insurance capital value of income beginning of the year plus payments during the year.

PCS. 4. A negative return of insurance can not be offset in the following 5 indkomstårs positive returns by the same insurance under the provisions of § 30 paragraph. 1.

PCS. 5. Payments from pension schemes etc. as mentioned in paragraph. 1, see. Paragraph. 2 and 3, to cover the taxation of ongoing returns are not included in the taxable income. Disbursement of funds to cover the tax must be made within the year following the year in which the return is earned.

PCS. 6. The Government may lay down rules on the submission of returns of pension and life insurance and payment of tax on returns. "
13th § 45 shall read:

"§ 45. Transfer of a pension agreement or an insurance between pension funds and life and pension insurance companies which are based in Greenland, is not treated as payments and receipts, transfer is:

1) between pension funds and life insurance with regular payments for life, see. § 39

2) from pension and life insurance with regular payments for life under § 39 a pension and life insurance with regular payments for life under § 39a,

3) between rate insurance plans for pension purposes in accordance. § 40, and

4) from annuity insurance for pension purposes, see. § 40, pension and life insurance covered by § 39.

PCS. 2. The transfer of a pension agreement or an insurance between pension funds and life and pension insurance companies that are not domiciled in Greenland, is not treated as payments and receipts, transfer is:

1) between pension funds and life insurance with regular payments for life, see. § 39, and

2) from pension and life insurance with regular payments for life under § 39 a pension and life insurance with regular payments for life under § 39 a.

PCS. 3. It is a condition for application of the rules in paragraphs. 1, there before the transfer occurred income tax liability or tax liability on the amount transferred. "
14th § 46 shall read:


"§ 46. For withdrawals from a pension plan or a life insurance policy that terminated prematurely answer a charge of 55 percent. If it is proved in accordance. § 39 a paragraph. 1, in the calculation of taxable income has not been deductibility or exemption of contributions to the plan, subject to a tax of 10 percent. Are contributions to a plan happened to both taxed and untaxed funds, answer a charge of 10 percent of such a large share of payments to which the person can demonstrate concern deposits with taxed resources, in accordance. § 39 a paragraph. 4.

PCS. 2. premature termination equivalent assignment, or other transfer of ownership or security and dispositions, etc., which means that the system no longer fulfills the purpose as a pension plan. The tax is levied on the amount at the time of the transfer, the transfer or disposition could be paid by the scheme's termination, possibly the value of reduction or the like. It is for the taxpayer to immediately notify the pension fund or life insurance or pension insurance company to those transactions.

PCS. 3. The rules in paragraphs. 2 shall not apply to distribution to the spouse of change of Fællesbo or boson change. After the distributions are the spouse independent income tax or taxation of the undistributed portion.

PCS. 4 pcs. 1 and 2 shall not apply if the scheme is covered by the Pension Tax Act Chapter 1. "
15th In § 47 paragraph. 2, the last sentence.
16. After § 67 added:

"§ 67 a. Persons in the calculation of taxable income may disregard payments from pension schemes, see. § 39 a paragraph. 1 and 2, if they can not use it in § 67 paragraph. 1, above personal allowance in full, ask the tax authorities for payment of the tax value of an unused deductions. Requests must be accompanied by appropriate documentation. The payout can not exceed an amount equal to the proportion of payments from these pension schemes plus the taxpayer's other tax-exempt income in proportion to the unused personal allowance.

PCS. 2. Withdrawal under paragraph. 1 takes place monthly in arrears.

PCS. 3. Tax Administration carries out concurrently with the issue of the final statement for the income year in which the personal allowance covers and no later than 1 September of the year following the tax year a statement of the paragraph. 1 mentioned payments and pays respectively charge any difference. "

§ 2
The Greenland Parliament Act comes into force on 1 January 2017.
PCS. 2. Government of Greenland outside the period 2017-2021 a grant for the payment of pensions, as specified in § 39 a paragraph. 1 and 2, said conditions.

PCS. 3. The grant that is taxable to the recipients, up 5 percentage points in the tax years 2017 to 2019 and 3 percentage points in the tax years 2020 and 2021 of the amount before tax is paid into a pension and life insurance scheme set up in a pension fund or life and pension insurance, not domiciled in Greenland. The subsidy for one person may not exceed 420 kr. Per. month in the period 2017-2019. For the period 2020-2021 the grant may not be more than 250 kr. Per. month.

PCS. 4. The subsidy is granted to persons who are fully taxable December 31, 2016 and pursuant to § 39 or § 41 paragraph. 2, have been entitled to deduct or been subject to the exemption of the 2016 payments made to a pension fund or life and pension insurance company not based in Greenland.

PCS. 5. The right to reimbursement shall cease when the person ceases to be a tax resident of Greenland.
PCS. 6. Subsidies for employees in Greenland and underlying institutions and municipalities paid along with the employee's salary.
PCS. 7. A person who is entitled to the subsidy and not covered by paragraph. 6 During the period 1 July to 30 September of the following year electronically submit an application to the tax administration of the grant for the previous indkomstårs payments. Administration of Taxation can lay down specific requirements for the payment of subsidies, including documentation requirements.

Greenland, June 6, 2016

Kim Kielsen