Greenland upstream fiscal summary Report

Country Report 25 May 2023

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Report summary

In July 2021, the Greenlandic government announced that no new exploration licences will be issued. All previous and existing licences were issued under concessionary terms. The current fiscal system includes a royalty with rates linked to an R-factor and a corporate income tax (25%). Greenland had granted licences through licensing rounds, but it also had an open-door policy for pre-defined areas. There is no mandatory state participation.

Basis
Licence terms
- Duration
- Relinquishment
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Ring fencing
- Royalty on Turnover
- Surplus Royalty
- Corporate income tax
- Ring fencing
- Base
- Rate
- Fiscal treatment of decommissioning
- Product pricing
Summary of modelled terms
Recent history of fiscal changes
Stability provisions
Split of the barrel and share of profit
Effective royalty rate and maximum government share
Progressivity
Fiscal deterrence