Tax in Grenada

Who is the tax authority and where do filings live?

Grenada's Inland Revenue Division (IRD) under the Ministry of Finance, Planning, Economic Development and Cooperatives administers Grenada's tax system [SC1]. Substantive law: Income Tax Act Cap 149, VAT Act 2009, Citizenship by Investment Act 2013, and successive amendments. Grenada is a CARICOM, OECS, ECCU, CARIFORUM, and AfCFTA-observer member.

What is the tax year and when are returns due?

Individual tax year is the calendar year. PAYE withheld monthly. Personal returns due 31 March. Corporate annual returns due 31 March for prior fiscal year [SC1]. VAT monthly returns. Provisional CIT through quarterly installments.

Who is a Grenadian tax resident?

Under Income Tax Act Cap 149, an individual is tax resident if (a) ordinarily resident in Grenada, OR (b) physically present 183+ days in tax year [SC2]. Residents taxed on Grenada-source income (territorial framework predominantly). Citizenship by Investment Programme under CBI Act 2013 provides citizenship-but-not-tax-residency framework.

What are the personal income tax rates?

Two brackets: 15 percent up to XCD 24,000 annually; 30 percent above [SC1]. Personal allowance XCD 36,000. National Insurance 5 percent (employee) + 6 percent (employer).

How does Grenada's corporate tax work?

CIT 28 percent flat for resident companies [SC2]. International Business Companies framework reformed post-2018. Withholding on dividends to non-residents 15 percent (treaty-reduced). Pillar Two not yet transposed. Tax losses 3 years.

What about VAT?

VAT 15 percent under VAT Act 2009 [SC3]. Reduced 10 percent on hotel accommodation. Zero-rated on exports.

How are cryptoassets taxed?

Eastern Caribbean Central Bank advisory: cryptoassets cautioned [SC2]. DCash CBDC participation through ECCB framework. Where declared, gains under existing income-tax categories.

What is the treaty network and what are the audit triggers?

Grenada has approximately 11 active double tax treaties [SC4]. MLI not yet ratified. CARICOM Multilateral Tax Convention. Standard SOL 6 years.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations [SC5]. Common pitfalls: (1) Citizenship by Investment Programme under CBI Act 2013 provides citizenship-but-not-tax-residency framework; (2) IBC framework reformed post-2018 with Economic Substance; (3) post-2017 Hurricane Maria/Irma economic-recovery context affecting tax administration progressively; (4) Pillar Two not yet transposed; (5) modest treaty network (11 DTCs); (6) MLI not yet ratified; (7) anglophone tradition; (8) AfCFTA-observer member; (9) parallel CARICOM/OECS/ECCU/CARIFORUM framework membership; (10) XCD-denominated tax base with 2.7:1 USD peg under ECCU; (11) tourism-and-nutmeg-export economy concentration; (12) post-2018 EU Code of Conduct compliance framework.