Grenada's tax regime includes corporate income tax, VAT, payroll tax, withholding tax, property tax, stamp duty, and an environmental levy. It is important for businesses operating in Grenada to understand and fulfill their tax obligations. Consulting with a tax professional or referring to the official website of the Grenada Inland Revenue Division is advised to stay updated on the latest tax regulations and requirements. By adhering to the tax laws of Grenada, businesses can navigate the tax landscape and contribute to the sustainable growth of the country's economy.
Corporate Income Tax:
Grenada imposes a corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Grenada is progressive, based on the level of taxable income. As of the knowledge cutoff date in September 2021, the tax rates are as follows:
- For companies with taxable income up to XCD 500,000: 28.75%
- For companies with taxable income above XCD 500,000: 30%
It's important to note that Grenada operates on a territorial tax system, meaning that only income derived from activities within the country is subject to taxation.
Types of Business Taxes in Grenada:
- Value Added Tax (VAT): Grenada operates a VAT system, which is applicable to most goods and services. The standard VAT rate in Grenada is 15%. However, certain goods and services may be exempted or subject to reduced rates.
- Payroll Tax: Employers in Grenada are required to pay payroll tax, which is a social security contribution based on the salaries of their employees. The payroll tax rate is progressive, ranging from 4% to 8.4% depending on the employee's gross monthly earnings.
- Withholding Tax: Grenada imposes withholding tax on certain types of payments made to non-residents, such as dividends, interest, royalties, and technical service fees. The withholding tax rates vary depending on the nature of the payment and may range from 10% to 15%.
- Property Tax: Property owners in Grenada are subject to an annual property tax. The tax rate depends on the type and value of the property.
- Stamp Duty: Stamp duty is payable on various legal documents, such as agreements, contracts, and property transactions. The rates vary depending on the nature of the document.
- Environmental Levy: Grenada imposes an environmental levy on the importation of specified items, including plastic bags, Styrofoam products, and certain types of packaging materials.
Grenadian Tax Authority Website:
For up-to-date and detailed information on business taxes in Grenada, it is recommended to visit the official website of the Grenada Inland Revenue Division, which is the tax authority responsible for tax administration in the country.
Grenada Inland Revenue Division Website: Official Grenada Inland Revenue Division Website