Doing Business in Greenland - Book - Page 15
activities covered by the Mineral
Resources Act. Also, the company
must i) not be taxed jointly with
other companies, unless joint
taxation is compulsory; ii) not be
more thinly capitalized than its
group; and iii) the loan capital may
exceed the shareholders’ equity up
to a ratio of 2:1.
The licence is granted for 30 years
unless a shorter period is
stipulated. The government may
extend the period for exploitation
up to a maximum of 50 years.
Following grant of the licence and
prior
to
commencement
of
development and production, a
development plan (including a
closure plan) must be approved by
the MLSA.
7.4.4 Royalty payment
Minerals
Sales Royalty
Minerals (other than REE,
gemstones and uranium)
2.5 %
REE*
5.0 %
Gemstones*
5.5 % (plus a surplus royalty of 15 % when a
profit margin exceeds 40 %)
* Corporate tax and corporate dividend tax may be offset against sales royalty or
surplus royalty
Helen Kibsgaard
Partner, attorney-at-law
hk@nuna-law.gl
Peter Schriver
Partner, Attorney-at-law
ps@nuna-law.gl
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