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
Municipalities of the Faroe Islands (FKF). Hagstova Føroya - information from 2007.<br> Tórshavn is both the capital of the Streymoy region and its own region, the latter being identical with Tórshavn municipality, but not including the area of the former Kollafjarðar kommuna.<br> Klaksvík both capital of the Norðoyggjar region as well of its own region, which constitute of the two municipalities Klaksvík and Hvannasund. Municipalities of the Faroe Islands The Faroe Islands are administratively divided in 30 municipalities ("kommunur"), with about 120 cities and villages. Until December 31, 2008, there were 34 municipalities, and until December 31, 2004, there were 48 municipalities. In the coming