Taxation in the Faroe Islands Taxation in the Faroe Islands Taxation in the Faroe Islands has differed from the taxes in Denmark since home rule was granted in 1948. This gives the Faroe Islands control over their own taxes. All citizens of the Faroe Islands are subject to personal taxation. The government tax rate on incomes up to DKK 500,000 is 20%. Incomes higher than this pay a fixed amount, always resulting in a higher percentage. There are multiple tax deductions in the Faroes. This includes a 14% deduction for fishermen. However, this is limited to 14% of DKK 470,000 corresponding to a maximum annual
Faroe Islands rat ("Rattus norvegicus"), and the house mouse ("Mus musculus"). Apart from these, there once was a local domestic sheep breed, the Faroe sheep (depicted on the coat of arms), a variety of feral sheep survived on Lítla Dímun until the mid-19th century. Grey seals ("Halichoerus grypus") are common around the shorelines. Several species of cetacea live in the waters around the Faroe Islands. Best known are the long-finned pilot whales ("Globicephala melaena"), which are still hunted by the islanders in accordance with longstanding local tradition. Orcas ("Orcinus orca") are regular visitors around the islands. The domestic animals of the Faroe