Grenada: corporate tax guide

What the tax system covers

Grenada-source profits are within the income-tax base. Section 30 also reaches foreign income incidental to a Grenadian business; the territorial label therefore requires an actual operational source analysis, not a foreign-customer or offshore-account test.

When a company becomes tax resident

The statutory residence definition includes a company incorporated in Grenada and a foreign-incorporated company managed and controlled in Grenada. Residence and the source of its assessable profit are separate questions.

Rates and the tax base

28% ordinary corporate income tax. The OECD peer review reports a 28% rate. Sectoral concessions, taxable-profit adjustments and subsequent amendments require separate checking.

Outbound dividends, interest and royalties

Dividends: 15%. The IRD identifies a 15% withholding rate on resident-to-nonresident income payments, using dividends as its example. Any exemption or treaty entitlement requires separate assessment.

Interest: 15%, with bank-deposit exception. The peer review identifies 15% withholding on interest other than bank-deposit interest. Check the lender, payment and any specific exemption or later amendment.

Royalties: 15%. The peer review identifies 15% withholding on royalties paid to nonresidents. Payment characterization and applicable treaty or statutory relief remain separate.

Local tax obligations remain separate from nationality

Grenada’s Inland Revenue guidance identifies income from business, employment, rentals, royalties, interest and other categories. It describes a personal employment threshold of EC$36,000 annually, or EC$3,000 monthly, and separately administers corporate income tax. The threshold is not a CBI contribution and is not an exemption for an entire company.

For a person intending to work from Grenada, classify the activity and determine the applicable local income and reporting obligations. The authority’s G-TAX guidance identifies withholding on certain payments by residents to nonresidents at 15%; exemptions, treaties and the payment’s legal character still require review.

Payments to overseas suppliers and owners

G-TAX identifies withholding on specified resident-to-nonresident payments at 15%. Determine the payment category, recipient and any applicable exemption or treaty before paying. The amount retained from a royalty, management charge or other covered payment is a separate issue from the company's own tax on its profit. A contract promising the recipient a net amount can also shift the economic cost to the payer.

Keep profit, cash transfers and owners separate

An operating model should show customers, contracting entities, personnel, assets and decision-makers. Then distinguish the company's trading receipts, payments to another group company, financing and distributions to shareholders. The owner's place of residence can create a second layer of taxation even where local business profits are correctly reported.

The review should deliver a calendar for income tax, payroll, withholding and other registrations, together with responsibility for filing and evidence retention. Banking records should agree with invoices and legal agreements. This is a practical implementation checklist; precise current filing dates and sector concessions must be confirmed for the entity rather than inferred from this overview.

Foreign companies and income attribution

A current legislative CFC review is not complete; citizenship-programme marketing is not sufficient evidence of the tax regime.

Departure, migration and continuing obligations

No comprehensive current departure-tax review is asserted in this draft.