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Inatsisartutlov Nr. 29 Of 28. November 2016 Amending Landstingslov Of Income Tax (Savings In Pension Purposes, Higher Threshold In Succession)

Original Language Title: Inatsisartutlov nr. 29 af 28. november 2016 om ændring af landstingslov om indkomstskat (Opsparing i pensionsøjemed, højere beløbsgrænse i generationsskifte)

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Inatsisartutlov nr. 29 of 28. November 2016 amending landstingslov of income tax

(Savings in pension purposes, higher threshold in succession)

Changed, repeals, primary laws, replacing information Change Landstingslov nr. 12 of 2. November 2006 on income tax § 1 in landstingslov nr. 12 of 2. November 2006 on income tax, as last amended by Inatsisartutlov nr. 7 by 6. June 2016, is amended as follows: 1. section 39 (a), paragraph 1 is replaced by the following: "section 39 (a).  In determining the taxable income except for withdrawals from a pension or life insurance system with continuous lifetime payout when the beneficiaries or the insured person can prove that not in determining the taxable income in Denmark, on the Faroe Islands or to Greenland have been wholly or partially deduct or bortseelsesret for payments to the scheme or that the answer is tax under section 46 (5) or (6). "
2. Under section 39 (b) is inserted: "§ 39 c.  In determining the taxable income except for payouts from a rate insurance in pension purposes created in a pension company, without having its registered office in Greenland is covered by the law on insurance business when the beneficiaries or the insured person can prove that rate insurance is created by way of transfer of the stock of retirement plans from a pension company with head office in Greenland for a pension company, without having its registered office in Greenland are covered by the law on insurance business and that the FSA has approved. This applies only to withdrawals from the rate of pension deposit, which was handed over as part of the transfer of stock of pension schemes, including withdrawals of income from this depot. Be conducted deposits to installment pension Depot after the depot is transferred as part of the transfer of stock of pension schemes, except that in determining the taxable income from such a large share of the payouts, which the beneficiaries or the insured person can prove was coated with tax under section 46, paragraph 5. section 39 (b) and section 67 (a) shall apply mutatis mutandis to the extent that in determining the taxable income can be excluded from payments from installment insurance. "
3. In article 44, paragraph 2, the following is inserted as a new No. 5: "5) return on a rate pension deposit that is transferred from a pension company with head office in Greenland for a pension company, without having its registered office in Greenland, is covered by the law on insurance business, as part of the transfer of stock of insurance approved by the Danish financial supervisory authority, while paragraph 1 shall apply to income from an increase in the rate of pension Depot caused by deposits to installment pension after the handover."
4. In section 46, shall be inserted after paragraph 4, as new pieces: "(5).  Paragraphs 1 and 2 shall not apply to the transfer of stock of pension schemes from a pension company with head office in Greenland for a pension company, without having its registered office in Greenland is covered by the law on the insurance company and are approved by the Danish financial supervisory authority. Upon such transfer of stock of pension plans subject to a levy for each pension scheme is the same size as the total printing percentage for the person who owns the pension scheme in the income year in which the transfer of stock of pension schemes takes place. The total printing percentage for a person is the sum of municipal taxes, national treasure, national treasure and the special municipal taxes.

  (6).  Paragraphs 1 and 2 shall not apply to transfers from a savings in pension purposes for pension funds, without having a registered office in Greenland, is covered by the law on insurance business or to life-and pension insurance companies there without having registered office in Greenland, the Danish FSA has permission to operate insurance business, provided the transfer is a result of a decision within the scope of § 47 f (2) , nr. 1. at the time of such transfer subject to a fee, which is the same size as the total printing percentage for the person who owns the savings in pension purposes, in the income year in which the transfer takes place. The total printing percentage for a person is the sum of municipal taxes, national treasure, national treasure and the special joint local treasure. "
5. In article 47, paragraph 1, the following is inserted as a new 2. sentence: "upon surrender as referred to in section 46, paragraph 5, should be reported and paid the tax to the tax administration not later than the last working day of the 4. month after the handover took place. "
6. Under section 47 is inserted as a new headline: "Chapter 4 (a) Savings in pension purposes".
7. Under the new heading shall be inserted: "section 47 (a).  This chapter shall apply to savings in pension purposes created at financial institutions, which has its head office or a permanent establishment in Greenland and have FSA authorisation to operate banking business here in the country.
  section 47 (b).  Deposits to savings in the pension purposes will be inserted on the separate pension deposit accounts in that Bank.

  (2).  The account must be linked to the capital with accrued interest, etc. must be paid to the owner of the account. In addition there shall be provided for payment in the event of the owner's death. The owner can as well by savings plan creation as later insert his heirs or one of the in the in clause 39 (1) (8). 4 and 6, said spouses, cohabitees and surviving children as favored. Is the owner's heirs as beneficiaries, taking any of them share in the savings after the fact, which the person concerned according to the Testament inheritance is justified for the owner, or the law. The owner has entered its "next of kin" as beneficiary, his or her spouse shall be deemed as inserted or, if such is not left behind, his or her children, or, if neither such is left, his or her heirs. The owner may revoke the appointment, if not to the satisfaction of the beneficiary are waived. Insertion of a favored and revocation of such insertion is only valid, if the financial institution shall be notified in writing or shall be included in or endorsed retirement savings agreement by the Bank.

  (3).  It may also be determined that the payment to the owner may happen in the event that the owner granted an early retirement pension in accordance with the rules of Inatsisartutlov on early retirement or in the event that the owner be exposed to life-threatening disease.
  (4).  The account can be linked to a spouse or common-law partner, a child pension insurance pension insurance, an ongoing disability insurance as referred to in section 39 (1) and an insurance at certain critical illnesses.

  (5).  Deposits referred to in paragraph 1 may be deducted in determining taxable income. The right to deduct is for the owner of the relevant deposit account, regardless of who has made the deposit, and is limited to deposits made while the owner is fully liable to tax in this country.

  (6).  In determining a worker's taxable income are not included amounts of employer paid into savings as referred to in paragraph 1. Bortseelsesretten is limited to deposits made while the employee is fully liable to tax in this country.

  (7).  Return on savings in pension purposes shall not be taken into account in determining the owner's taxable income. Companies and associations established in Greenland, which distributes dividends, see. section 86 (1) and (2) shall not include the dividend tax, when the proceeds are received by the savings in pension purposes.
  section 47 c.  Funds in a savings in pension purposes may only invest in products, where the risk of losing the entire amount invested must be considered as very little, and product type is not difficult to see through (risk category green) or in products, where there is a risk that the amount invested can be lost in whole or in part, and product type is not difficult to see through (risk category yellow). Of the total savings in the green category of risk investment must constitute 100 percent. Of the total savings in the yellow category of risk investment must not exceed: (a) persons under 35 years) 100 per cent.

(b)) For persons between the ages of 35-44 years 90 per cent.

(c)) For persons between 45-49 years 80 per cent.

(d)) For persons between the ages of 50-59 year 70 per cent.

e) For persons between 60-64 years 50%.

f) For persons between 65-69 years 30%.

g) For persons over the age of 69 years, 10 per cent.
  (2).  Exceeds the proportion of shares or complex products by the end of the year referred to in paragraph 1 specified maximum, shall be without prejudice to article rebalanceres. However, paragraph 3.
  (3).  Is that in the last 3 income year made deposits into a savings in pension purposes, which is owned by a person who, on 31 December. December is not filled 63 years, can rebalanceringen be made know that is not invested in shares or complex products until the stock percentage or proportion of complex products is less than the maximum specified in paragraph 1.
  section 47 d.  Funds in a savings in pension purposes may not be put in real estate or in stocks, etc., which are not admitted to trading on a regulated market or a multilateral trading facility, or shares, etc., that has as objective or as one of its purposes to give the owner of the certificate of deposit account usage rights, discounts or similar, or in units in a self-employed capacity.

  (2).  The value of securities issued by a single issuer must at the time of purchase do not exceed 20 percent of the total savings in pension purposes. However, there may always be placed a sum of 50,000 kroner in securities issued by a single issuer. The said amount shall be adjusted on the basis of it by Statistics Greenland settled regulatory price indices with the within the last 12 months of incremental change in the regulatory price index per 1. July. The adjustment is carried out once a year, valid from the following 1. January. The Minister shall publish the adjusted amount each year by 1. January.
  (3).  Funds in a savings in pension purposes shall not be placed in stocks, etc. in companies, where the owner and the owner's family owns 25 percent or more of the shares, etc. of the company. In determining its stake be included also shares, etc., as the owner owns outside the pension scheme, as well as shares, etc., which is owned by his or her spouse, parents, grandparents, children, grandchildren and their spouses. Place children and adoptive equated with biological family's relationship.
  section 47 (e).  Take a the owner of a savings in pension purposes shares or other assets acquired with funds in a savings in pension purposes, the owner must give the bank information on the value of the asset and pay the value thereof for pension deposit account. Exceeds the value of set-aside shares, etc., the deposited amount, taxed the difference after the provision in section 46 (1).

  (2).  Transfer of a savings in pension purposes between financial institutions as referred to in section 47 (a) or between financial institutions as referred to in section 47 (a) and pension funds and life-and pension insurance companies with registered office in Greenland are treated not as out-and deposits.
  § 47 such payments to the owner of a savings in pension purposes may not be as of the date the owner's 60th birthday, unless a lower age limit approved by the tax administration. Payment must commence no later than the date on which the owner attains his retirement age, see. section 1 of the Inatsisartutlov for old-age pensions.

  (2).  Before the first payout from a savings in pension purposes owner must decide how disbursements should be distributed. The following conditions must be met: 1) a Minimum of 50% of the owner's savings in pension purposes and provident schemes must be paid as an ongoing lifelong benefits lapse by death.

2) a maximum of 50% of the owner's savings in pension purposes and provident schemes may be paid in equal installments over at least 10 years.
  (3). Declaration in accordance with paragraph 2 shall be made on the basis of the values top 2 months before the first payout from a savings in pension purposes. By statement included savings in pension purposes and provident schemes, where payments are made or where payments can be initiated within a period of 3 years from the first payment from a savings in pension purposes.

  (4).  Represents the total value of the owner's savings in pension purposes and provident schemes, see. paragraphs 2 and 3, less than 700,000 USD, can the owner get paid up to 100,000 USD of funds in savings in pension purposes as a lump sum payment and. Any funds remaining shall be paid with 4,500 us $ per month.
  (5).  Upon the owner's death falls to funds in a savings in pension purposes, without prejudice to the beneficiary or beneficiaries. section 47 (b), paragraph 2. Is not provided for payment in the event of the owner's death, or the beneficiary or beneficiaries are deceased, accrue to funds in a savings in pension purposes the owner's estate. The financial institution shall, not later than at the same time as the notification of the person concerned on the owner's death, inform the Court which deals with the owner's estate, on the preferential insertion, the accrued amount and whether payment has been made. The Court must then notify the owner's spouse and descendants.

  section 47 g.  Money institutions shall each year before the end of January for each owner of a savings in pension purposes disclose the total amount that has been paid for and paid from the savings.

  (2).  Anyone who carries out the payment from a savings in pension purposes or otherwise pays out benefits as referred to in section 47 (b), (3) and (4) and section 47 f, paragraph 2, 4 or 5, shall be considered as the withholding obligation, see. section 76 (1) and (2), and must contain, including deposit and account for the withholding tax in accordance with the rules which apply to withholding payers.
  § 47 h.  Income skattepligten is the responsibility of the owner or after the owner's death are entitled to payouts, see. section 47 (b), paragraph 2.
  (2).  Neither of the owner or the beneficiary rights to the funds in a savings in pension purposes may be subject to prosecution from their creditors ' page, see. However, paragraphs 3 and 4.

  (3).  Comes the owner during the bankruptcy, and it is found that the person in the course of the last 3 years prior to the due date for payment of deposits on a savings in pension purposes applied a after his fortune mode at the time the payment took place, excessive amounts can the estate over to the Bank, require that the property be paid too much in the estate, in so far as it can be provided by individual value. Is the savings maturing without being paid before the due date, or due the during the bankruptcy proceeding, the bankruptcy estate under the conditions referred to in paragraph 1 shall require a corresponding share of the savings paid to the estate.
  (4).  Paragraph 3 applies, regardless of whether there is inserted a favored, and regardless of whether the owner has committed itself not to revoke the preferential treatment. The beneficiary has paid remuneration for the inauguration, is the person entitled to the estate to claim this back. Where the beneficiary has been paid to the savings, can make the claim against this estate.
  section 47 in.  § 39, paragraph 2, section 40 a (1), § 41, paragraphs 1 and 3, § 46, paragraphs 1-3 and § 47 shall apply mutatis mutandis for savings in pension purposes. "
8. In article 57, paragraph 3, the words "100,000 DKK" to: "350,000 us.".
9. In article 57, paragraph 3, the following is inserted as a new paragraph 2.

"A permit under paragraph 1 shall not have a duration of more than 10 years and the allowable amount must not exceed $3,500,000. in everything."

§ 2 Inatsisartutloven shall enter into force on the 1. January 2017, without prejudice. However, paragraph 2.

  (2).  section 47 c (2) and (3) shall take effect from the 1. January 2020.

  (3).  By the estimation of the current income after Inatsisartutlov about housing in rental units, Inatsisartutlov for old-age pensions and early retirement pension except for deposits of Inatsisartutlov before tax for pension or life insurance schemes with continuous lifetime payout when the beneficiaries or the policyholder not in determining the taxable income has to deduct or bortseelsesret for payments under the scheme referred to in article 6. section 39 (a), paragraphs 1 and 2.

Greenland's autonomy, the 28. November 2016 Kim Kielsen