Faroe Islands

A. Progress in the implementation of the minimum standard

The Faroe Islands has five tax agreements in force, as reported in its response to the Peer Review questionnaire, including the multilateral Nordic Convention concluded with Denmark, Finland, Iceland, Norway and Sweden (the “Nordic Convention”).1 Three of those agreements, the agreements with Greenland and India as well as the Nordic Convention, comply with the minimum standard.

The Faroe Islands has not joined the MLI.

The Faroe Islands is implementing the minimum standard through the inclusion of the preamble statement and the PPT.

The Faroe Islands signed a complying instrument with respect to its agreement with Greenland.

The Faroe Islands indicated in its response to the Peer Review questionnaire that the agreements with India and Switzerland are agreements concluded by Denmark that apply to its territory.

The Parties to the Nordic Convention signed a complying instrument in 2018. The protocol entered into force on 28 November 2019 and its provisions took effect 1 January 2020.

B. Implementation issues

No jurisdiction has raised any concerns about their agreements with the Faroe Islands.

Summary of the jurisdiction response – Faroe Islands

Treaty partners

Compliance

with the

standard

If compliant,

the alternative

implemented

Signature of

a complying

instrument

The alternative

implemented through the

complying instrument

(if not the MLI)

Comments

1

Denmark

Yes

PPT alone

N/A

N/A

Nordic Convention

2

Finland

Yes

PPT alone

N/A

N/A

Nordic Convention

3

Greenland

Yes

PPT alone

N/A

N/A

4

India

Yes

PPT and LOB

N/A

N/A

DK MLI

5

Iceland

Yes

PPT alone

N/A

N/A

Nordic Convention

6

Norway

Yes

PPT alone

N/A

N/A

Nordic Convention

7

Sweden

Yes

PPT alone

N/A

N/A

Nordic Convention

8

Switzerland

No

N/A

No

N/A

DK Protocol

9

United Kingdom

No

N/A

No

N/A

Note

← 1. See the Multilateral convention concluded by Denmark, Finland, the Faroe Islands, Iceland, Norway and Sweden: for the avoidance of double taxation with respect to taxes on income and on capital (1996, 1997, 2008 and 2018). In total, the Faroe Islands identified eight "agreements" in its List of Tax agreements: three bilateral agreements and the Nordic Convention.

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