Withholding Tax
WITHHOLDING TAX ACT 36/1994
What is Withholding Tax?
Withholding Tax is a tax payable when a person:
(a) A resident in Grenada, makes a payment or credits an amount; or
(b) A non-resident, makes a payment or credits an amount in relation to a permanent establishment of the person in Grenada to a non-resident. (Section 50)
Withholding Tax is payable on the following;
- Salaries
- Interest (except from bank deposits)
- Discounts
- Rent
- Lease premium
- License charge
- Royalty
- Management of charge
- Commissions
- Fees
- Royalties on other payments
Tax Rate
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. 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.
Where Can payments be made?
Withholding Tax is payable to the Government of Grenada. It can be paid at the Inland Revenue Divison's Cash Office or any District Revenue Office.
N.B.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.
Record Keeping
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.