A resident company is required to include income of a foreign subsidiary in its taxable income, if such foreign subsidiary constitutes a CFC, subject to following conditions:
- The resident company, alone or together with other group companies, individual owners, controls the foreign company;
- The subsidiary's financial assets represent on average more than 10% of the its total assets in a tax year; and
- The subsidiary is subject to a 'substantially lower tax' than under the tax laws of Greenland.
CFC income generally includes passive and financial income.