Who Pays The Tax?

Every Company excluding those with concessions, Sole Proprietors, Professionals and Employees earning in excess of $60,000.00 per annum.

When is the tax due?

The tax is due and payable at the end of your financial year, but deducted monthly by the employer in the case of an employee.

Rate of Tax

Companies –thirty percent (30%) of net profit Sole Proprietorships, Professionals and Employees—thirty percent (30%) of the excess over $60,000.00.

To whom is the tax payable?

The tax is payable to the Government of Grenada. Payments can be made at Inland Revenue Division, or any District Revenue Office.

On What!

Income tax is chargeable on net profit as it relates to companies and all other types of businesses. In the case of sole proprietorships there is a $60,000 exemption.

Returns

All returns are due within ninety days after the end of the accounting period (fiscal year basis). But in the case of a company it must be accompanied with a financial statement.

Interest

Interest 1.5 % per month or part there of is charged on the unpaid balance.

Offences

Civil Penalties —You have ninety days after your accounting period in which to file your return. If you fail to furnish a return on time you shall incur a penalty of $100 or 10% of the taxes unpaid, which ever is greater.

Criminal Penalties—The law provides for criminal proceedings to be taken against persons who do not comply with the laws.

Appeals The same rights for appeals exist for Income Tax as for Annual Stamp Tax. See Appeals under the Annual Stamp Tax section page 4.

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Withholding Tax

Withholding Tax Act 36/1994 Section 50

Withholding Tax is a separate tax from the Income Tax although the rules are contained within the Income Tax Act.

Any person who makes payments to a non-resident is responsible for paying Withholding Tax.

Withholding Tax is payable on:

Salaries Interest (except from bank deposits) Discounts Rent Lease premium

License charge Royalty Management of charge Commissions Fees Royalties on other payments

Withholding tax shall be deducted from the actual amount paid at the rate of tax of (15%) fifteen percent.
The tax is payable within seven (7) days after the date of payment or credit to the payee.

Withholding Tax is payable to the Government of Grenada. It can be paid at the Inland Revenue Department, or any District Revenue Office.

Where any person fails to deduct Withholding Tax he or she shall be personally liable to pay the amount which he or she failed to deduct.

Every person who has deducted any withholding tax shall furnish to the payer/non-resident a certificate showing:

• The gross amount of the payment
• and the tax deducted.

The person deducting the withholding tax must also maintain a yearly record showing:

• The nature of the payment to each payee.
• The gross amount of the payment.
• The amount of tax deducted.
• The name and address of the payee.

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