Suila-tapit - Employment Deduction
Suila-tapit Employment Deduction
Suila-tapit is paid out employment deductions.
The first film is an introduciton to Suila-taput, who it is calculated and wheni it is paid out.
The seconds film offers possible explanations why you might not have received Suila-tapit.
Background
In 2024, Inatsisartut passed a tax reform.
The purpose of the reform is to improve the financial framework for employed individuals.
The reform aims to reduce inequality and encourage more people to join the labour market.
The reform includes an increase in the personal deduction and the employment deduction.
A new feature is that the employment deduction will be paid out monthly.
The amount you receive will depend on your income from work.
If you wish to receive the earned income deduction from March 2025, you should:
Ensure that you have a NemKonto.
Have wage income, trading income, or income as a self-employed individual.
Target Group and Rates
The target group for the payment of the employment deduction includes citizens with annual work income ranging from DKK 70,000 to DKK 500,000.
All income groups benefit from tax relief through the increased personal deduction.
Below, you can see which monthly income levels (gross wages) qualify for specific rates of the deduction.
Citizens with a monthly income below DKK 5,833 are not eligible for the employment deduction.
For incomes above this threshold, the earned income deduction is 17.5 % of your salary up to a monthly income of DKK 12,500.
Example:
If you earn DKK 10,000 per month, the calculation is:
10,000 DKK - 5,833 DKK = 4,167 DKK * 17.5 % = 728 DKK paid out.
Incomes between DKK 160,000 and DKK 250,000 annually
This corresponds to monthly incomes between DKK 13,333 and DKK 20,833, which qualify for the highest rate of employment deduction.
Citizens in these income brackets can expect to receive DKK 1,312.50 per month.
Incomes above DKK 250,000 annually
For citizens earning more than this, the deduction amount decreases.
If your monthly income exceeds DKK 43,000, you will not receive an earned income deduction. However, you will still benefit from a tax reduction due to the increased personal deduction, meaning a larger portion of your salary is paid out to you.
The Tax Agency can only pay out your earned income deduction once we have information about your income.
In the legislation, this is referred to as the Tax Agency receiving a signal from the labor market. The Tax Agency will process and pay out the deduction only after receiving and verifying this signal.
A signal from the labor market consists of:
- Income reporting from employers,
- Income information from trade or processing centers,
- Payment of B-taxes by self-employed individuals,
- Payment of dividends.
It takes two months from the time these incomes are reported or B-taxes are paid. Therefore, you can expect to receive your earned income deduction for income earned in February by April and for income earned in November by January.
First Payment
You can expect to receive the first installment of your earned income deduction two months after the Tax Agency receives the labor market signal.
Starting from March 2025, payments will be made on the third Tuesday of each month.
The employment deduction is paid to you based on your expected income for the year. This means that your payment may differ from what you anticipated.
This can especially occur when:
- Your income, such as from trade or processing, varies significantly from month to month.
- Your tax payments fluctuate.
- The Tax Agency has indications from previous years that you have received dividends.
- The Tax Agency has indications from previous years that your income differs from this year's income.
If you have not received the employmrnent deduction, the following reasons may apply:
- Your income is too high to qualify for the earned income deduction.
- Your income is too low to qualify. The deduction is available to individuals with employment income of at least DKK 5,834 per month.
- The amount due to you is less than DKK 100. Payments are deferred until the total exceeds DKK 100.
- The Tax Agency has information indicating that your income has fluctuated significantly from month to month in recent years. This results in mixed signals. Payment will be made once the signals are clarified.
- Your employer has not reported your salary to the Tax Agency's employer register, Sulinal. Contact your employer.
- Your employer has reported your salary, but the report was late or contained errors. Contact your employer.
- Your trading or processing facility has not reported your income. The report may also have been late or contain errors. Contact your trading facility.
- You are not employed.
- Your income comes from sources such as educational support, retirement pensions, or social benefits.
- You are not fully tax-liable to Greenland.
- You are self-employed and have not paid your ongoing B-taxes.
- Alternatively, you have paid an amount so large that the Tax Agency's calculations estimate your income will exceed DKK 41,700 per month.
- The Tax Agency has indications from previous years that you received dividends. They expect your income to exceed DKK 41,700 per month on average.
- You do not have a NemKonto (EasyAccount). Contact your bank to establish one.