A Greenlandic bill, circulated for public comment with deadline 3 August 2009, proposes radical changes to the taxation of mining and mining-related activities in Greenland. The draft bill also proposes to amend personal tax rules, but this will not be addressed here.
If the bill is passed, businesses which are grantedlicencesfor the prospecting, exploration and exploitation of mineral resources under the terms of the Act on Mineral Resources in Greenland will be subject to limited tax liability (i.e. on their Greenland-based income) as from the date on which the licence is granted. A transition rule is proposed for licenceholders with costs related to surveys and exploration prior to the new law.