Tax laws Grenada
Grenada's tax system encompasses various taxes, including personal income tax, corporate tax, value-added tax (VAT), and property transfer taxes. Here's an overview:
Personal Income Tax:
Taxable Income: Residents are taxed on income earned within Grenada. There is no taxation on worldwide income, capital gains, or inheritance.
Tax Rates: The first $36,000 Eastern Caribbean Dollars (XCD) per annum is exempt. Income between $36,001 and $60,000 is taxed at 15%, and income exceeding $60,000 is taxed at 30%.
Allowances: Individuals are entitled to a deduction of $36,000 XCD from their assessable income.
Corporate Tax:
- Tax Rate: Companies operating in Grenada are subject to a corporate tax rate of 28% on net income.
Value-Added Tax (VAT):
Standard Rate: 15% on most goods and services.
Reduced Rate: 10% for hotel accommodations and dive operations.
Exemptions: Certain goods and services may be zero-rated or exempt to minimize the tax burden on residents.
Property Transfer Tax:
For Citizens: 0% when purchasing and 5% when selling property.
For Non-Citizens: 10% when purchasing and 15% when selling property.
Additional Fees: Non-citizens face a 10% land license fee, and all transactions incur a 1% stamp duty.
Withholding Tax:
- Rate: A 15% withholding tax applies to certain payments to non-residents, including dividends, interest, and royalties.
Social Security Contributions:
Employee Contribution: 5% of salary to the National Insurance Scheme (NIS).
Employer Contribution: 4% of employees' salaries to the NIS. citeturn0search6
Tax Administration and Deadlines:
Personal and Corporate Income Tax: Returns must be filed within 90 days after the financial year-end.
VAT: Returns are due by the 20th day of each month.
PAYE (Pay As You Earn): Payments are due by the 7th day of each month.
Online Tax Services:
- G-TAX Platform: Grenada's Inland Revenue Division offers the G-TAX system, allowing taxpayers to register, file returns, and pay taxes online.
Grenada's tax structure, characterized by exemptions on global income, capital gains, and inheritance, enhances its appeal as a favorable jurisdiction for individuals and businesses. However, it's essential to consult the Inland Revenue Division or a tax professional for the most current and personalized information.
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