Withholding Tax Act 36/1994 Section 50
Withholding Tax is a separate tax from the Income Tax although the rules are contained within the Income Tax Act.
Any person who makes payments to a non-resident is responsible for paying Withholding Tax.
Withholding Tax is payable on:
* Interest (except from bank deposits)
* Lease premium
* License charge
* Management of charge
* Royalties on other payments
Withholding tax shall be deducted from the actual amount paid at the rate of tax of (15%) fifteen percent. The tax is payable within seven (7)
days after the date of payment or credit to the payee.
Withholding Tax is payable to the Government of Grenada. It can be paid at the Inland Revenue Department, or any District Revenue Office.
Where any person fails to deduct Withholding Tax he or she shall be personally liable to pay the amount which he or she failed to deduct.
Every person who has deducted any withholding tax shall furnish to the payer/non-resident a certificate showing:
* The gross amount of the payment
* and the tax deducted.
The person deducting the withholding tax must also maintain a yearly record showing:
* The nature of the payment to each payee.
* The gross amount of the payment.
* The amount of tax deducted.
* The name and address of the payee.