Due to the COVID-19 situation many Greenlandic companies are now experiencing a significant decline in activity, which causes financial challenges for the companies. Also, many employees risk losing their jobs and thereby their income, if theyare dismissed.
In order to support the Greenlandic business sector and the employees in Greenland, the Government of Greenland, Naalakkersuisut, has launched three aid packages; two packages focused on the business sector and one focused on employees.
The aid packages for the business sector – the emergency package and the general package
The emergency package focuses on private companies engaged in the hotel and restaurant business as well as the service industry. So far, DKK 50 million have been allocated for the emergency package.
The scope of the general package is to mitigate financial problems in other business sectors, e.g. the fishing industry, the building and construction industry, the transportation sector etc. So far, DKK 100 million have been allocated for the general package.
Only companies registered in Greenland are covered by the aid packages, and the majority of the employees of such companies must be domiciled in Greenland.
Furthermore, only companies experiencing a loss of at least 30% of their turnover etc. is covered.
The aid package for employees (wage compensation for private sector companies)
DKK 107 million are allocated for compensating wage costs for employees working in Greenland, whom the companies choose to send home instead of dismissing them due to the COVID-19 situation.
Only companies facing dismissals of at least 30% of the employees or more than 25 employees is covered.
Wage compensation may be granted for three months until and including 30 June 2020.
How to apply?
From 23 marts 2020 at 12:00 applications for the emergency package and the general package could be submitted to Greenland Business, who is managing these aid packages. Applications and questions can be submitted to Greenland Business here:
The aid package for the employees are managed by the Greenlandic Tax Agency. Applications can be submitted here:
You can find further information on the aid packages here: https://www.businessingreenland.gl/en and in the fact sheet here:
Information on Covid-19 and the aid packages on the said websites is only available in Danish and Greenlandic. If you need our assistance, we will be at our service.
Other initiatives – due dates for tax payments postponed, and government-guaranteed credit schemes
In order to help the business sector through the COVID-19 situation, Naalakkersuisut has launched an initiative that gives Naalakkersuisut the authorization to postpone due dates for tax payments etc.
Furthermore, Greenlandic companies may be covered by the governmental-guaranteed credit schemes that provide support to the liquidity of companies. These schemes are managed by the Danish Growth Fund (“Vækstfonden”, the Danish state’s investment fund). Applications and questions can be submitted to the Danish Growth Fund here: https://vf.dk/covid-19/.
Nuna Law is at your service for advice and guidance on the various COVID-19 matters.
(+299) 55 79 22
Kista Høegh Niclasen
(+299) 48 23 70