Tax
Income Tax Act with VAT at 15 percent
The Income Tax Act charges corporation tax at 28 percent and taxes individuals on a progressive scale above a generous threshold, with the Inland Revenue Division administering assessment. Value added tax is 15 percent under the Value Added Tax Act, with a reduced rate for hotel accommodation and a range of exemptions. Grenada has no capital gains tax, no inheritance tax and no wealth tax.
Key rules
- Jurisdiction — National taxation administered by the Inland Revenue Division
- Deadline — Income tax return: filed by 31 March following the year of assessment
- Deadline — VAT return: filed and paid by the 20th of the following month
- Deadline — Pay as you earn: remitted by the 15th of the following month
- Deadline — Property transfer tax: paid on transfer, at a higher rate for non-nationals
Governing law
- Income Tax Act
- Value Added Tax Act
- Property Transfer Tax Act
- Tax Administration provisions of the Income Tax Act
In practice
Property transfer tax is charged at a materially higher rate on non-national vendors and purchasers, so the tax cost of a foreign purchase is not just the alien landholding licence fee and should be modelled before committing. The absence of capital gains tax does not shelter profits that amount to trading income, and developers holding land as stock are taxed on the ordinary basis.