Dividends

All joint-stock companies, partnerships, and limited liability companies are required to withhold tax on paid or credited dividends. Dividends include all distributions made by a company to its shareholders, except for bonus shares and liquidation proceeds.

This tax is not levied on the company itself but is a tax that the company withholds and pays on behalf of the shareholders or partners. Both the distributing company and the recipient are responsible for ensuring correct taxation.

The dividend tax is due as soon as the decision to pay or credit dividends is made. Payment must be made to the Tax Agency no later than one month after the due date. Late payments are subject to interest of 1% per commenced month from the due date, with a minimum fee of DKK 500. Note that interest on late-paid taxes cannot be deducted when calculating taxable income.

Companies that decide to distribute dividends must submit a special dividend declaration to the Tax Agency along with the dividend tax payment. Companies that decide not to distribute dividends must also submit a dividend declaration within one month of the decision.

• You can complete the form digitally via Sullisssivik here.
• The Dividend Declaration (U1 form) and its guidance can be downloaded in Greenlandic and Danish.
• Anyone who withdraws or receives credited dividends can, upon satisfactory proof of identity, request that the payer certify the payment or credit on a “Dividend Certificate.”
• The Dividend Certificate (U2 form) can be downloaded in Greenlandic and Danish here.

Legal Basis
The requirement is based on § 88, subsection 1, first sentence, of Act No. 12 of November 2, 2006, on Income Tax, as amended by Act No. 41 of December 2, 2019.