Monday, November 4, 2013

Greenland Has Adopted a 37% Flat Tax

Greenland , an autonomous country within the Kingdom of Denmark, applies a national flat-rate 37 % personal income tax on the worldwide income of its residents.  Its 18 municipalities also apply flat-rate taxes of their own, 5% in 7 and 8% in the other 11, bringing the overall flat rate to 42% and 45% respectively.  Individuals are granted a personal and basic allowance of DKK 58,000 before tax is assessed.  ($1 = DKK 5.52)  Per capita income is about US$37,000, thus the first $10,500 is exempted from tax.  Tax is assessed on both cash and income in kind.

Corporate tax on business profit is levied at a flat rate of 31.8% both on resident and non-resident companies.  Any subsequent distribution of dividends from previously retained earnings, which must be withheld by the enterprise, is taxed at the individual rate in the municipality in which it is registered, either at 42% or 45%.

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