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
Regions of the Faroe Islands Faroe Islands, more or less following the boundaries of the districts and constituencies. If this happens the Faroe Islands will have left the administrative structure of "parish-municipalities" which was built up in the first half of the 20th century and entered a structure of "regional-municipalities". Furthermore, there was a long-running discussion on reducing or even removing the constituencies. In the end, from the 2008 election onwards, the constituencies were abolished. The regions (sýsla) are not administrative parts of the islands like the municipalities (kommuna), the municipalities charge taxes from the citizens who live there. The regions cannot charge taxes from