Key Takeaways
- Foreign-owned companies that fall within scope must file a corporate income tax return in Grenada and register with the Inland Revenue Division.
- Returns are governed by the Income Tax Act and Tax Administration Act, which set out what must be reported and how the obligation applies.
- Filing follows a 90-day rule, and returns can be submitted through e-filing on the IRD portal, with extensions available on application.
- Late or incorrect filing can trigger penalties, so non-resident owners should track deadlines and confirm registration and payment obligations early.
Understanding the Corporate Income Tax Return in Grenada
The Corporate Income Tax Return is the annual filing through which a company reports its income, deductions, and tax payable to the Inland Revenue Division. This obligation applies in Grenada and is governed by the Income Tax Act No. 36 of 1994, published as Chapter 149 of the Laws of Grenada. It binds both resident and non-resident companies that carry on business or earn income from sources within the country.
This article explains who must file, what the return contains, when it is due, how to submit and pay it, and what happens if you miss the deadline. It is written for foreign owners and their advisers who hold or plan to hold a company on the island and need to keep it in good standing with the tax authority.
Who Must File a Corporate Income Tax Return
Tax attaches to the chargeable income of corporations, sole traders, trustees, and partners in a partnership. A company is treated as a tax resident if it is registered locally or if its head office sits in the country; resident firms are taxed on profits from all sources there, while non-resident companies are taxed on income sourced within Grenada.
If you earn your income entirely outside the country and hold no local entity, no Grenadian tax obligation arises. The duty to file begins the moment you register a company or start earning income on the island.
The same rate and filing process apply whether the entity is a domestic start-up or an overseas company operating through a local branch. Businesses that traded without registering can be assessed for back taxes covering up to six years of operation.
Public sources do not confirm an income floor below which a company is wholly exempt from filing a Corporate Income Tax Return, as distinct from the payment thresholds that apply to individuals. Confirm your position directly with the Inland Revenue Division.
One point of relief for foreign owners: the jurisdiction imposes no capital gains tax, no net worth tax, and no inheritance or estate taxes.
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Legal Basis: The Income Tax Act and Tax Administration Act
The governing statute is the Income Tax Act No. 36 of 1994, which levies tax on the financial income of individuals, corporations, and other legal entities. It defines the sources of assessable income that make up chargeable income, sets out exemptions, and grants the authority powers to examine business records and inspect documents.
A second instrument, the Tax Administration Act, deals with procedure. Its Clause 26 lets the Comptroller permit a taxpayer to file late, while making clear that this does not move the date on which payment falls due unless a separate extension to pay is granted.
Two features matter for cross-border owners. Grenada maintains double taxation treaties with the United Kingdom and other CARICOM states, so a local tax resident earning income in a treaty country avoids paying full tax in both. The country also exchanges tax information under the Common Reporting Standard and FATCA, meaning account and ownership data may be shared with your home authority.
Tax losses may be carried forward for six years, a rule that runs from the 2015 tax period, and can offset chargeable profits only in each later year.
Tax Registration with the Inland Revenue Division
Before any filing, anyone liable to tax must register with the Inland Revenue Division and obtain a Taxpayer Identification Number. The TIN is permanent and unique, and you must quote it in every dealing with the authority.
Registration runs through the G-TAX system: select "Request New TIN," complete the application, upload the requested documents, and submit. The IRD then reviews the documents and contacts the applicant for anything further it needs.
Most foreign-owned entities act through a local representative. An authorised agent such as a lawyer, accountant, customs broker, or tax professional can register the business, access its accounts, make enquiries, and update records; that authority stays in force until you revoke it. Where someone files on the entity's behalf, a proxy form must be lodged with the IRD.
You must also tell the Comptroller of any change in the status or ownership of the business. Note that the specific government fee for TIN registration and the exact document list for a company are not published; confirm both with the IRD.
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What Must Be Reported on the Corporate Income Tax Return
The return is an annual statement of company income, allowable deductions, and tax payable, and audited or reviewed financial statements are generally submitted alongside it. Tax is computed on net profit, after expenses incurred wholly and exclusively in producing income and any allowances the legislation permits.
The standard corporate tax rate widely cited across sources is 28% of taxable profits, though some third-party guides quote different figures. Verify the enacted rate against Chapter 149 or with the IRD before you rely on it.
Several items can change the figure you report:
- Tax losses carried forward, available for up to six years from 2015, applied against chargeable profits
- Reduced liability for businesses holding concessions under the Fiscal Incentives Act or other investment incentives
- For non-resident companies, withholding tax on income derived from local sources, including a 15% withholding tax on interest
The official form number and prescribed fields of the Corporate Income Tax Return are not published; the IRD's form-downloads page is the source to check. The accounting standard required for the financial statements is likewise unconfirmed, though entities across the OECS region commonly apply IFRS or IFRS for SMEs.
The income tax assessment window looks back six years, while the VAT rule specifies seven years of records. Holding documents for seven years is the safer standard pending confirmation of the Income Tax Act's own retention provision.
Filing Deadline and Frequency: The 90-Day Rule
One return is filed each fiscal year. The deadline is 90 days after the company's fiscal year-end, that is, within three months of the close of the financial year.
Your fiscal year can be any 12-month period you elect and need not match the calendar year. Where a deadline lands on a weekend, it rolls forward to the next business day.
| Item | Rule |
|---|---|
| Filing frequency | Annual, one return per fiscal year |
| Filing deadline | Within 90 days of fiscal year-end |
| Payment due | Within 90 days of financial year-end |
| Payment with return | Any balance due is paid on submission |
| Advance payments | Monthly instalments based on prior-year liability |
The tax itself is also due within ninety days of year-end, and any balance should be paid when the return is submitted.
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Paying the Tax Due
The system runs on advance instalments. Monthly amounts, set by reference to the previous year's liability, are paid to the IRD through the year, with any remaining balance settled when you file the return.
Payment can be made at the Inland Revenue Division or any District Revenue Office, with cheques payable to the Government of Grenada. Online payment is available through G-TAX, which also lets you view current obligations and request refunds.
A taxpayer unable to pay in full at filing may submit the return and request a payment arrangement with the IRD. Late tax, including unpaid PAYE, carries interest of 1.5% per month or part of a month until cleared.
The precise instalment schedule and the formula for estimating each payment are not published in official sources; instalments are typically based on the prior year's assessed liability, so confirm the exact dates with the IRD. Whether card or electronic transfer is accepted through G-TAX for corporate tax is also unconfirmed.
How to File: E-Filing and the IRD Portal
G-TAX is the IRD's online tax system, used to register, file returns, and pay. Beyond filing, it lets you view obligations, manage licences, update account details, register a representative, request refunds, obtain a tax clearance certificate, and lodge an objection.
The platform rolled out in two phases. Phase 1, in January 2024, brought three monthly taxes online: VAT, PAYE, and Corporate Income Tax instalments. Phase 2 was planned for late 2024 to add all tax types and the full service package.
Once your e-registration is approved, the IRD emails a unique username and password, which must not be shared. Users of the earlier system at taxservices.gov.gd carry their existing credentials over to G-TAX.
Paper and in-person filing remain available at the IRD main office on Young Street, St. George's, and at District Revenue Offices, quoting your TIN. One caveat for planning: public sources do not confirm that the full annual return, as opposed to monthly CIT instalments, can yet be completed end to end through the portal, so check this with the IRD.
Applying for an Extension of Time to File
An extension to file is available, but timing is strict. The Comptroller may grant one only if you apply before the original due date; a late request cannot be considered.
Apply by written letter to the Comptroller, Inland Revenue Division. The form name and the maximum period are not published, and the duration sits at the Comptroller's discretion.
A filing extension does not postpone payment. If you file within the extended deadline but pay late, late-payment charges and interest still apply unless you also secured a separate extension of time to pay.
Penalties for Late or Incorrect Filing
Filing late triggers a civil penalty set at the greater of two measures. The schedule below sets out both.
| Basis | Initial charge | Continuing charge |
|---|---|---|
| (a) Percentage of tax owing | 5% of tax owing | + 1% of tax owing per month or part month |
| (b) Fixed sum | EC$500 | + EC$100 per month or part month |
Older Ministry of Finance guidance still published online states the civil penalty as EC$100 or 10% of unpaid tax, whichever is greater. The two formulations coexist; treat the detailed schedule above as the working basis and verify the point with a local adviser.
On payment, interest runs at 1.5% per month or part of a month on any unpaid balance. A business that operated without registering can be assessed for up to six years of back taxes.
The Income Tax Act also penalises a failure to furnish a correct return, separate from failing to file at all, though the monetary amount is not publicly retrievable. The law allows criminal proceedings against persons who do not comply.
If you disagree with an assessment, you may lodge a written objection with the Comptroller within 30 days of the notice of assessment, or within any further time the Comptroller allows for good cause.
Conclusion
For a foreign-owned company, the discipline that matters most here is the 90-day clock: the return and the tax both fall due within three months of your fiscal year-end, and the penalty for slipping compounds month by month. The absence of capital gains, net worth, and estate taxes makes the regime lighter than many, but the corporate filing itself is firm and time-bound.
Settle the enacted tax rate and your registration position with the Inland Revenue Division before your first year-end, and run advance instalments through G-TAX so the closing balance does not surprise you.
How Expanship Can Help Your Business in Grenada
Expanship manages the Corporate Income Tax Return process for foreign-owned companies, from TIN registration and G-TAX setup to preparing the annual return, computing instalments, and meeting the 90-day deadline. The same team supports the full set of obligations a non-resident owner carries on the island.
- Company formation and structuring for your local entity
- Registered agent and registered office services
- Ongoing compliance and management of tax and statutory filings
- Accounting and bookkeeping aligned to the return's financial-statement needs
- Economic-substance and beneficial-ownership reporting support
- Introductions to banking partners
To discuss your filing position and timeline, contact Expanship Grenada.
Frequently Asked Questions
The return must be filed within 90 days of the company's fiscal year-end, and the tax falls due within the same period. If the deadline lands on a weekend, it moves to the next business day.
Most sources cite a standard rate of 28% on taxable profits, though a few third-party guides quote different figures. Confirm the enacted rate against Chapter 149 of the Laws of Grenada or directly with the Inland Revenue Division before relying on it.
Yes, where they earn income sourced within the country. Non-resident companies are taxed on local-source income and pay withholding tax on it, including a 15% withholding tax on interest.
A civil penalty applies, set at the greater of 5% of the tax owing plus 1% per month, or EC$500 plus EC$100 per month, in each case continuing while the failure persists. Unpaid tax also bears interest at 1.5% per month or part of a month.
The Comptroller can grant a filing extension, but only if you apply in writing before the original due date. An extension to file does not delay payment, so late-payment charges still apply unless a separate extension of time to pay is granted.
The income tax assessment window looks back six years, while the VAT rule specifies seven years. Retaining records for seven years is the safer standard pending confirmation of the Income Tax Act's own retention provision.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
