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 "sýslur" (similar to the British "shire": Norðoyar, Eysturoy, Streymoy, Vágar, Sandoy, and Suðuroy). Although today "sýsla" technically means "police district", the term is still commonly used to indicate a geographical region. In earlier times, each "sýsla" had its own assembly, the so-called "várting" ("spring assembly"). The Faroe Islands have been under Norwegian/Danish control since 1388. The 1814 Treaty of Kiel terminated the Danish-Norwegian union, and Norway came under the rule of the King of Sweden, while the Faroe Islands, Iceland, and Greenland remained Danish possessions. From ancient times the Faroe Islands had a parliament ("Løgting"), which was abolished in 1816,