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 Nólsoy. Production of hard alcohol such as snaps is forbidden in the Faroe Islands, hence the Faroese akvavit is produced abroad. Since the friendly British occupation, the Faroese have been fond of British food, in particular fish and chips and British-style chocolate such as Cadbury Dairy Milk, which is found in many of the island's shops. There are records of drive hunts in the Faroe Islands dating from 1584. Whaling in the Faroe Islands is regulated by Faroese authorities but not by the International Whaling Commission as there are disagreements about the Commission's legal authority to regulate cetacean hunts. Hundreds