Brief on Dividend Tax

Under the provisions of the Greenland Parliament Act on Income Tax (Chapter 8), all public and private limited companies registered as domiciled in Greenland are required to withhold dividend tax on distributed or credited dividends, including interim dividends paid during the year.

Dividends are defined as anything distributed by a company to its shareholders, excluding bonus shares and liquidation proceeds. The same applies to dividends for limited liability company shareholders.

Withholding Obligation

Withholding must be carried out regardless of the individual circumstances of the shareholders, whether they are individuals, companies, associations, or others.

Payment of Dividend Tax

Dividend tax must be paid to the Tax Agency no later than the first day of the month following the month in which the decision to distribute or credit the dividend is made. If the due date falls on a Sunday, public holiday, or Saturday, the deadline is extended to the next working day.

Payments should be made to account no. 6471-1002608. The following details must be provided:
"Company CVR number \ Tax Year \ DIVIDEND." The tax year refers to the company's financial year to which the dividend relates.

Example:
If a company uses the calendar year as its financial year and decides to distribute dividends for the financial year 2021 in April 2022, the dividend declaration (Section 2) and payment should reference "2021." The dividend tax payment must be made by May 1, 2022, and the dividend declaration must be submitted by May 9, 2022.

For late payments, interest is charged at 1% per commenced month, calculated from the due date. Note that interest on late tax payments is not deductible when calculating taxable income.

Submission of Dividend Declaration

You can access the digital form here (in Danish). 

The company must submit a dividend declaration to the Tax Agency no later than the 10th of the month following the decision date for the dividend distribution or crediting. Companies deciding not to distribute dividends must also submit a declaration by the 10th of the following month. If the deadline falls on a Sunday, public holiday, or Saturday, it is extended to the next working day.

The dividend declaration must include:

• The company's name, CVR number, tax municipality, decision date for the dividend distribution, the financial year to which the dividend relates, payment date, and any additional relevant information.
• The following amounts must be stated: Distributed/credited dividends, any interest for late payment, and a total amount (to be paid).

For dividend resolutions made on or after January 1, 2020, recipient information must also be submitted. This requirement also applies to earlier resolutions where recipient information is submitted after January 1, 2020. This obligation follows § 88, subsection 1, paragraph 1 of the Greenland Parliament Act No. 12 of November 2, 2006, on Income Tax, as subsequently amended.

Reporting Dividend Recipients

For each recipient, provide their CPR/CVR/TIN number, name, address, and country of residence. Specify the gross dividend amount (before dividend tax) distributed/credited to each recipient.

Recipient reporting is done on the same web form as the dividend declaration.

Issuance of Dividend Certificate

Anyone withdrawing or receiving credited dividends may, upon satisfactory proof of identity, request that the payer certify the payment or crediting to the recipient. This certification must be made on a "dividend certificate."