How can an Umbrella Company Help with Contracting in Grenada?
Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.
They’re called Umbrella Companies (or, contractor management companies).
Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.
Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Grenada. Even better, most are experts in Grenada and expat tax law, meaning they’ll also help you optimise your earnings in Grenada.
Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.
Can I Organise My Taxes and Work Permit Myself?
Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Grenada.
If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.
Also, are you familiar with the intricacies of the tax system in Grenada, as well as your own country’s laws on overseas earnings? If so, good on you!
However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Grenada and your home country can seem like full-time work in itself.
A Contractor’s Guide to Taxes in Grenada
One of the most consistently challenging aspects of contracting in Grenada is complying with the country’s tax system. As well as paying tax in Grenada, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
How do I calculate my taxable income in Grenada
If you’re working in Grenada under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Grenada for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Grenada, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Grenada through PAYE is left with the prospect of doing everything themselves.
Do you know much about Grenada Tax Law? Does Grenada have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Grenada can range from 0 to 30 percent, and you need to be sure you are placed in the correct tax brackets.
Tax Filing as a Contractor in Grenada
|When Do You Need to Lodge Your Tax Return?||After the end of the tax year which is the calendar year (ending 31 December), tax returns may be filed.|
|Tax Filing Deadline||31st March. The deadline is usually 90 days after the end of the financial year.|
|Can you file it online?||Yes, https://eservices.gov.gd/taxefs/auth/Public/LogOn.aspx?ReturnUrl=%2ftaxefs%2fonline%2fdefault.aspx|
How to File Taxes in Grenada as a Contractor
The process for filing tax return in Grenada involves:
Step 1: Register to be an E-User(link is external). Click “Register User” and fill out the form that appears. Upload the required attachments and click “request”. You will need the following:
- Electronic copy of your Passport picture page, Driver’s Licence or National ID
- Tax Identification Number.
Step 2: You will receive a confirmation email. Read and click the link provided in the email to complete your registration.
Step 3: Log-in to the E-filing system(link is external).
Step 4: Use the e-declaration module to file your Individual Income Tax return. To do this you will be required to have the following documents:
- Tax identification number
- Statement of withholding from your employer.
Step 5: After submitting the return, you will be issued a receipt for successful e-filing.
Step 6: Any outstanding tax due may be paid online via e-services(link is external).
Note: Late filing will incur a fine of
- $500 + $100 for every month late or
- 5% of the amount of tax owing + 1% for every month late, whichever is larger.
- Tutorial for filing taxes manually: https://www.ird.gd/index.php/taxes/individuals/personal-income-tax(link is external)
- A pdf of the individual income tax return form may be downloaded here.(link is external)
Tax Figures in Grenada
|Currency||Eastern Carribean Dollar (XCD)|
|Tax-free Threshold in Grenada||XCD 36,000|
|Income Tax Rates|
Tax Residency in Grenada
When do you become a tax resident in Grenada
You become a tax resident in Grenada when:
An individual is considered a resident if he/she is physically present in Grenada for at least 183 days in a fiscal year.
Does the 183 day rule apply in Grenada
Am I taxed on my global income in Grenada
Yes if you are a resident. Non-residents are taxed on their Grenada-sourced income only.
Can you set up your own Limited Company in Grenada?
|How long does it take to set up||15 days|
|How much does it cost||XCD 3,770|
|Is it easy?||Starting a Business Rank: 82 https://www.doingbusiness.org/data/exploreeconomies/grenada|
Tax Calculator in Grenada
If you are a contractor and want a calculation on your tax and net retention in Grenada, we can supply it to you free of charge.
Using an Umbrella Company for Income Tax in Grenada
Contractors in Grenada are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Grenada umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Grenada taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Grenada tax office or tax department directly including processing your tax refund if you are eligible.
How We Can Help You with Tax in Grenada
We work with numerous umbrella companies in Grenada, many of whom are experts in tax and immigration laws. If you have any questions about tax in Grenada, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Grenada work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Grenada but without the overhead of directly dealing with the Grenada tax authorities. Get in touch with us today for some reliable advice on tax in Grenada!
A Contractor’s Guide to Work Permits in Grenada
Immigration is one of the primary concerns for any contractor hoping to start working in Grenada. Permanent employees will find it easy to get their Grenada work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.
The Grenada work permit, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Grenada is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
How Does an Umbrella Company Work?
Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.
When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.
While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Grenada (which means avoiding fees, fines, or even worse penalties).
How Can We Help You?
There’s a huge variety of Umbrella Companies with different specialities and advantages in Grenada. How do you find the right one for your circumstances?
We work closely with Umbrella Companies all throughout Grenada and match contractors with the right company for them. If you’ve already secured a contract in Grenada, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).