What is Income Tax?
Income Tax - is a tax levied on the chargeable income of individuals, corporations, or other legal entities.
Who is required to pay Income Tax?
Corporations, trustees, sole traders, partners within partnerships and all employees who earn in excess of $3,000 monthly or $36,000 per annum.
What is Chargeable Income?
The chargeable income of a person for any year of assessment is the aggregate amount of the assessable income of that person for that year of assessment from the sources specified in section 29.
What is Assessable Income?
The assessable income of any person shall include the gains or profits from or by way of -
(a) any business;
(b) any employment;
(c) rentals and royalties;
(d) interest other than interest exempted in paragraph (a) of section 25(1);
(f) premiums, commissions, fees and licence charges;
(g) annuities and other periodic receipts;
(h) gains or profits or amounts deemed to be income of that person under this Act; and
(i) any other gains or profits accrued to that person which are not included under any other paragraph of this subsection.
Please refer to Part V
What is Employment Income?
Section 31 of the Income Tax Act of 1994, states that Employment Income of any person for any year of assessment shall include:
- Any amount accrued by way of wages, salary, leave pay, fee (including director’s fee), commission, bonus or gratuity in respect of employment in Grenada.
- Any travelling, entertainment or other allowance to the extent to which it does not represent a repayment to the employee of moneys wholly, exclusively and necessarily expended by him in the performance of the duties of their employment.
- The rental value of any quarters or residence provided by reason of the employment.
- The value of any other benefit or advantage received or enjoyed by the employee by reason of the employment.
- Any pension payable to a former employee or the dependent of a former employee by the trustees of a pension fund in respect of the employment.
- Any loan or advances by a controlled company to a shareholder deemed to be employment income.