Grenada Budget Cuts Taxes
by Mike Godfrey, Lowtax.net, Washington
15 December, 2016
Grenada's Prime Minister, Keith Mitchell, has announced personal income tax cuts as part of the island nation's 2017 Budget.
From January 1, 2017, the personal income tax rate will fall from 15 percent to 10 percent on annual salaries of between XCD36,000 (USD13,333) and XCD60,000 (USD22,222). Salaries up to XCD36,000 (USD13,333) will continue to be exempt from tax, while salaries in excess of XCD36,000 (USD13,333) remain subject to tax at the rate of 30 percent.
Income tax on pensions will be removed from January 2017.
There will be a tax registration amnesty for the period January to March 2017, which is intended to encourage business owners who have not yet registered their business with the Inland Revenue Division (IRD) to do so without the application of the registration penalty. The current penalty for failing to register with the IRD is XCD2,500 (USD926).
In response to requests from the business community, the rate of Annual Stamp Tax will fall from 0.75 percent to 0.7 percent. This reduction will take effect for the 2018 tax period.
A tax filing amnesty for Annual Stamp Tax will apply for the period 2013 to 2015, without the imposition of a filing penalty. The period of this filing amnesty will run from June to August 2017.
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