Economic Relations between Greenland's Self-Government and the State

Chapter 3: Economic relations between Greenland's Self-Government and the state

§ 5. The state provides Greenland's Self-Government with an annual subsidy of DKK 3,439.6 million. DKK, cf. however § 8, subsection 1. The amount is stated in the 2009 price and wage level.

PCS. 2. The grant is adjusted annually in accordance with the increase in the general price and wage index in the Finance Act for the year in question.

PCS. 3. The grant is paid in advance by 1/12 each month.

PCS. 4. The Minister of Finance can, in agreement with Naalakkersuisut, lay down rules on changed payment terms.

§ 6. Case areas that are taken over by the Self-Government of Greenland according to §§ 2-4 are financed from the time of the take-over by the Self-Government.

PCS. 2. The Self-Government of Greenland takes over the real assets that are directly connected to a case area that is taken over.

§ 7. Income from raw material activities in Greenland accrues to the Self-Government of Greenland.

PCS. 2. Those in subsection 1 stated income includes the following income:

1) Income in accordance with specific permits for preliminary investigation, research or exploitation of mineral raw materials, however, apart from amounts paid to cover expenses under the auspices of the Directorate of Mineral Resources.

2) Income from any taxation in Denmark and Greenland of rights holders, as far as the part of the business that relates to mineral raw materials in Greenland is concerned.

3) Income from Greenlandic and Danish public authorities' ownership shares in companies, etc., which operate in the raw materials area in Greenland.

4) Income from dividend tax etc. in Denmark and Greenland regarding shareholders in companies that are rights holders, or in companies that fully own such companies directly or indirectly and can receive dividends from them tax-free.

§ 8. If the Self-Government of Greenland receives income from raw material activities in Greenland, cf. § 7, the state's subsidy to the Self-Government is reduced by an amount corresponding to half of the income, which in the relevant year exceeds DKK 75 million. DKK

PCS. 2. With effect from 1 January of the year following the entry into force of the Act, it is regulated in subsection 1 mentioned amount of DKK 75 million. DKK annually in accordance with the increase in the general price and wage index on the Finance Act for the year in question.

PCS. 3. Statement according to subsection 1 takes place in the following year with a view to settling the following year.

§ 9. When the Greenland Self-Government takes over the raw materials area, the government ensures that, for a fee, advice and other tasks are provided for the self-government's handling of the raw materials area.

PCS. 2. Naalakkersuisut and the government enter into, with effect from the Greenland Self-Government's takeover of the mineral resource area, an agreement on those in subsection 1 mentioned services.

PCS. 3. Naalakkersuisut can decide to renew it in subsection 2 mentioned agreement in the form of multi-year agreements.

PCS. 4. When entering into agreements pursuant to subsection 2 and 3, the government makes research of particular relevance to mineral exploration in Greenland available free of charge to Naalakkersuisut.

§ 10. If the government's subsidy to Greenland's Self-Government is reduced to DKK 0, cf. § 8, negotiations will begin between Naalakkersuisut and the government on the future economic relations between Greenland's Self-Government and the state, including on the distribution of income from mineral activities in Greenland, on the resumption of the state's subsidy to Greenland's Self-Government as well as a continuation of an agreement on the services mentioned in § 9.