Grenada: Domestic Corporate Taxes

Grenada The National Reconstruction Levy

Grenada Withholding Tax

Withholding tax of 15% (at the time of writing) is payable on the following items:

Grenada Double Tax Treaties

Grenada has a double tax avoidance agreement with the UK dating from 1949, with an amending protocol dated 1968.

By virtue of the UK's double tax avoidance agreement with South Africa, Grenada has some double tax avoidance arrangements with that country. Taxes payable under the laws of Grenada, whether directly or by deduction on profits or income from sources within Grenada, shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits or income by reference to which Grenada tax is computed.

In the case where a resident company of Grenada which pays a dividend to a resident company in the United Kingdom who controls directly or indirectly at least 10% of the voting power in the first-mentioned company, the credit shall take into account the taxes paid in Grenada by that first-mentioned company in respect of the profits out of which such dividend is paid.

The Caricom Double Taxation Agreement applies within Caricom, i.e. Barbados, Guyana, Jamaica and Trinidad and Tobago and the less developed Caricom countries, being Antigua, Belize, Dominica, Grenada, Montserrat, St. Lucia, St. Vincent and St. Kitts, Nevis and Anguilla. The treaty largely removes fiscal barriers within Caricom and provides for income arising in one Caricom territory for a resident of another to be taxed only in the source country. The Treaty also exempts dividends payable by a company resident in one Caricom territory from taxation both in the country in which the income arises but also in the country in which the shareholder is resident.

Grenada also has a Tax Information Exchange Agreement with the United States within Caricom's programme for such treaties under the Caribbean Basin Initiative. As a result, Grenada is considered to be part of the North American area for purposes of claiming deductions for expenses incurred in connection with a convention beginning on or after the 1987.

The tax information exchange agreement, which Grenada signed with the United States in 1983, in accordance with the Caribbean Basin Economic Recovery Act, provides for the exchange of tax information between these two countries. Except as provided by provisions of the Exchange of Information Agreement, no information in any form by any person may be divulged to any person or governmental authority whether within or inside Grenada.

In July 2006, a CARICOM summit meeting discussed the possible abandonment of the Free Trade Area of the Americas (FTAA) in favour of a regional bilateral free trade agreement with the USA.

Grenada also has preferential trade agreements in place with the United States and Canada under the Caribbean Basin Initiative and Carbican, which allows goods produced in Grenada to enter these markets duty-free. In addition, tariff concessions are available on exports to Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela by virtue of an agreement between CARICOM and these countries.

Grenada Value Added Tax

Grenada has announced the imposition of a Value Added Tax as from January 1, 2010, to replace the existing General Consumption Tax which applies at rates of 5%, 8% and 10% to most services.