Taxes in Grenada

Grenada has a national tax system without a separate tax structure for administrative regions or municipalities. The Inland Revenue Division (IRD) of the Ministry of Finance handles registration, assessments, payments, refunds, tax clearance certificates, objections and many compliance checks. Customs & Excise administers the Common External Tariff, import duty, import VAT, excise tax, petrol tax, environmental levy and customs service charge. Appeal Commissioners hear tax appeals after the applicable objection process. A Tax Identification Number (TIN) is a permanent unique number used in correspondence with the IRD. Individuals, sole traders, partnerships, companies and trustees may need registration. The G-TAX portal supports registration, return filing, payments, account checks, refund applications, tax clearance certificates, objections and representative authorisations, although its coverage depends on the tax year and current portal version. Personal income tax applies to chargeable income from employment, business or professional activity, rent, royalties, interest, commissions, fees, licence charges, annuities and other profits. IRD guidance identifies a filing threshold above EC$3,000 per month or EC$36,000 per year. Historical or continuing Ministry of Finance guidance states 15% on the first EC$24,000 of chargeable income and 30% above that amount; the current consolidated rules should be checked before calculation. Employers normally deduct Pay As You Earn (PAYE) from each wage payment and send it to the IRD, but the employee's personal tax position can still require separate attention. Companies, sole traders, partnerships and trustees can owe tax on business income. Corporate income tax guidance identifies a 30% rate on net profit. Annual Stamp Tax is based on gross receipts from the previous year: the first EC$36,000 is exempt, the rate is 0.5% below EC$300,000 and 0.7% from EC$300,000, with a minimum of EC$100. The return is due by 31 March of the assessment year, and payment is normally divided into nine instalments from April to December. Late filing can trigger at least 5% of the tax plus 1% per month or EC$500 plus EC$100 per month, subject to a maximum of EC$10,000; late payment can attract 20% and interest of 1.5% per month compounded. Value-added tax (VAT) registration generally applies when taxable supplies exceed EC$300,000 a year. Public-entertainment promoters and licensees may need registration regardless of turnover. Only a registered person displaying the required VAT certificate may charge VAT. Rates depend on the supply: IRD information confirms 10% for tourism and accommodation, while Ministry of Finance guidance identifies 15% for many goods and services, 20% for mobile talk and text, and 0% for specified supplies. S.R.&O. 25/2025 and 26/2025 changed schedules or regulations, so the current taxable-supply list must be checked. VAT returns and payment are generally due by the 20th day of the following month. Import VAT is paid to the Comptroller of Customs and is calculated using the customs value, transport and insurance, customs duty, service charge and excise tax where applicable. Property tax is charged on market value using different land and building rates. Residential land is listed at 0.2% and residential buildings at 0.3%; commercial land and buildings at 0.5% and 0.3%; hotel land and buildings at 0.3% and 0.02%; industrial land and buildings at 0.3% and 0.2%; and agricultural land and buildings at 0%. An owner-occupied homestead deduction of EC$100,000 may apply to one property. The demand begins on 1 January, with a 5% discount when 50% is paid by 31 March and the balance by 30 June. After 29 August, a 20% fine and 1.5% monthly interest may apply. An objection to a valuation must generally be filed within 14 days. Property Transfer Tax depends on citizenship, transaction value and the type of transfer. For citizens, the vendor rate is listed as 5% of market value. For non-citizens, the vendor rate can be 15% and the purchaser rate 10% on the consideration or market value; other non-citizen property transactions can apply 10% to each side. A deed of gift up to EC$150,000 may be exempt, with a separate EC$20,000 threshold applying in the stated rules. An Alien-Landholding Licence from the Prime Minister's Office can be a prior requirement for a non-citizen property purchase; that licensing requirement is separate from the tax itself. Withholding tax (WHT) applies to certain payments to non-residents. IRD G-TAX information identifies 15% for dividends, while Finance guidance lists categories such as interest other than bank deposits, rent, lease premiums, licence charges, royalties, management charges, commissions and fees. The payment category, beneficial ownership, treaty relief and the recipient's residence should be checked before applying a rate. Customs and Excise also administer excise tax on imported or manufactured excisable goods, with returns and payment generally due by the 20th day of the following month; import rates depend on the goods and HS code rather than a single general percentage. Registered taxpayers must keep relevant books and records for at least seven years and file applicable returns. An extension should be requested before the due date. A taxpayer who lacks cash should still file and can request a payment arrangement. The IRD may issue a best-judgment assessment, use warrants or pursue court action when returns are missing or errors remain unresolved. Refunds and objections use IRD forms or G-TAX procedures; an objection to the Comptroller should state its grounds and can lead to the statutory appeal process. Grenada has tax agreements with the United Kingdom and CARICOM, and its wider treaty network covers additional jurisdictions under the applicable treaty status. Treaty relief is not automatic: residence, source, payment category and the relevant treaty must be checked. Grenada also participates in automatic financial-account reporting under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA), including the US-Grenada agreement. Reports can involve a TIN, account and financial-institution details and birth data. Foreign income should not be treated as automatically tax-free; the Grenada source rules and the applicable treaty or reporting regime determine the result.