www.statusin.org

Organization : Inland Revenue Department
Type of Facility : Income Tax
Country: Grenada

Website : http://www.ird.gd/index.php/services/taxes/income-tax

Income Tax :

Act 36/1994 – Payable by every Company excluding those with concessions, Sole Proprietors, Professionals and Employees earning in excess of $60,000.00 per annum.

Related : IRD Inland Revenue Department Grenada VAT Registration Number/ Taxpayer Identification Number : www.statusin.org/8858.html

Withholding Tax forms part of the Income Tax Act but is applied on remittances or payments made to non-residents.

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.

Income Tax FAQ :
What is Income Tax?
Income Tax – is a tax levied on the chargeable income of individuals, corporations, or other legal entities.

Who is required to pay Income Tax?
Corporations, trustees, sole traders, partners within partnerships and all employees who earn in excess of $3,000 monthly or $36,000 per annum.

What is Chargeable Income?
The chargeable income of a person for any year of assessment is the aggregate amount of the assessable income of that person for that year of assessment from the sources specified in section 29.

What is Assessable Income?
The assessable income of any person shall include the gains or profits from or by way of :
(a) any business;
(b) any employment;
(c) rentals and royalties;

(d) interest other than interest exempted in paragraph (aa) of section 25(1);
(e) discounts; (f)premiums, commissions, fees and licence charges; (g) annuities and other periodic receipts;
(h) gains or profits or amounts deemed to be income of that person under this Act; and

(i) any other gains or profits accrued to that person which are not included under any other paragraph of this subsection.

What is Employment Income?
Section 31 of the Income Tax Act of 1994, states that Employment Income of any person for any year of assessment shall include :
** Any amount accrued by way of wages, salary, leave pay, fee (including director’s fee), commission, bonus or gratuity in respect of employment in Grenada.
** Any travelling, entertainment or other allowance to the extent to which it does not represent a repayment to the employee of moneys wholly, exclusively and necessarily expended by him in the performance of the duties of their employment.

** The rental value of any quarters or residence provided by reason of the employment.
** The value of any other benefit or advantage received or enjoyed by the employee by reason of the employment.

** Any pension payable to a former employee or the dependent of a former employee by the trustees of a pension fund in respect of the employment.
** Any loan or advances by a controlled company to a shareholder deemed to be employment income.