Page 87 - Caribbean-Central America Profile 2018

GRENADA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

FREE TRADE ZONES / VALUE ADDED TAX (VAT) • Venezuela - Caricom Agreement
INDUSTRIAL SITES This tax is imposed on the value of imports and • Colombia - Caricom Agreement
There are no free zones in Grenada. However, on goods and services supplied by one business • Dominican Republic - Caricom Agreement
there are two industrial parks: to another or to final consumers within Grenada. • Canada - Caricom Agreement
• Frequente Industrial Park: a 198,000 sq The value added tax (VAT) replaces the General
ft., 18 building complex, is located in St. Consumption Tax, Airline Ticket Tax and Motor • Cuba - Caricom Trade and Economic Co-
George’s, 2 miles from the Maurice Bishop Vehicle Purchase Tax. operation Agreement
International Airport and 5 miles from the Taxable supplies are taxed at either the Standard • Costa Rica - Caricom Agreement
container port and deep water harbour in St. rate of 15% and 10% or at Zero-rate (0%). • Economic Partnership Agreements (EPAs)
George’s. Those supplies that are Zero-rated are listed in • Investment Protection and Promotion
the First, Second and Third Schedules of the Agreement with the United Kingdom
• Seamoon Industrial Park: a 33,000 sq ft., VAT Act. Input tax paid can be claimed on all
4-building complex, with administrative taxable supplies. • Reciprocal Encouragement and Protection
and maintenance facilities is located in St. of Investment with the USA
Andrew’s. In contrast to the standard rate of 15% on
domestic sales, a number of sectors have been GOVERNMENT
TAXES identified for special tax treatment under VAT. Grenada is a member country of the
PROPERTY TRANSFER TAX Tourism attracts a special rate of 10%. Dive Commonwealth of Nations, and functions under
The Property Transfer Tax [Amendment] Act activities also attract the special rate of 10% a parliamentary system of government (except
No. 37 of 1998 regulates the payment of taxes while marina berth and dockage will be exempt for the period March 1979 to October 1983).
on the transfer of real estate valued in excess of from VAT. The monarch is hereditary.
ECD$20,000: Approved new development projects in the The Governor General represents Queen
• Non-nationals purchasing property i.e. real key priority industry/ sector will be exempted Elizabeth II who has been Head of State since
estate, right, title or interest in lands and from paying VAT on the importation of capital 6 February 1952. The cabinet is appointed by
shares in a company, pay 10% of the value goods, building materials and equipment while the Governor General on the advice of the Prime
of the property value. in implementation stage. Approved enterprises Minister following legislative elections. The
would be required to pay VAT on domestic leader of the majority party or the leader of the
• Non-nationals selling property i.e. real purchases and be refunded after three (3) months majority coalition is usually appointed Prime
estate, right, title or interest in lands only if the enterprise has been registered for Minister by the Governor General.
and shares in a company, pay 15% of the VAT. Manufacturing enterprises will qualify for
property value. a rebate of 10% which will be allowed against Legislative power is vested in the Parliament,
tax liability exclusive of VAT. which consists of the House of Representatives
WITHHOLDING TAX (15 members) and the Senate (13 non-
The Income Tax Act of 1994 regulates the elected members). Executive power is vested
payment of a withholding tax at the rate of 15% TRADE AGREEMENTS AND in the Cabinet that consists of the Prime
on revenue earned by non-nationals who are not INVESTMENT TREATIES Minister and other Ministers of Government.
• Caribbean Basin Initiative (CBI)
residing in the country. Upon repatriation of the Grenada became a parliamentary democracy
revenue the tax is applied either on the gross • Caribcan (Westminster model) after the December 1984
monthly or annual earnings. • Caricom elections.

Starting a Business - Registration Requirements:
No: Procedure Time to complete: Costs
1 Search and reserve company name 3 days XCD 10

2 Lawyer prepares company statutes 2 days XCD 2,500
Register with Corporate Affairs and Intellectual
3 5 days XCD 1,200
Property Office and receive company certificate
4 Make company seal 2 days XCD 69

5 Register for taxes 2 days no charge

6 Register for social security 1 day no charge

Source: The World Bank Group

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