Tax In Grenada

A Contractor’s Guide to Taxes :

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:

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 Calculator:

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 :

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:

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!

 

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
Currency:
Eastern Carribean Dollar (XCD)
Tax-free Threshold in:
XCD 36,000
Grossed Income:
Up to XCD 36,000
Tax Rate:
0%
Grossed Income:
XCD 36,001 to XCD 60,000
Tax Rate:
15%
Grossed Income:
Above XCD 60,000
Tax Rate:
30%
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
How to File Taxes in:

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.

Additional Information

Does the 183 day rule apply in:

Yes

When do you become a tax resident in:

An individual is considered a resident if he/she is physically present in Grenada for at least 183 days in a fiscal year.

Am I taxed on my global income in:

Yes if you are a resident. Non-residents are taxed on their Grenada-sourced income only.

 

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