PAY AS YOU EARN(PAYE) – PAYE is income Tax charged on employee’s income exceeding $3000 monthly, deducted, and paid to Inland Revenue by Employers.
Businesses with employees whose income exceed $3000 in each month is required to register and file PAYE on a monthly basis. Registration can be done via a letter to the comptroller, informing that the Employer now has employees earning within the tax threshold.
WhoPays the Tax
This tax is deducted by employers and paid by employers before the 7th day of each month via prescribed forms sent by the Comptroller of IRD.
Forms & Notices
Forms, notices, returns, and other documents prescribed or published by the Comptroller for the purposes of the Act, may be in such form as the Comptroller determines for the efficient administration of the Act, and is valid whether published in the Gazette.
Rate OF Tax
PAYEis chargedbased on the current income Tax Rate on the income of Employees.
To Whom is the Tax Payable?
This tax is payable to the Government of Grenada through the Inland Revenue Division
PAYE Returns and Payments
- A taxable Employershall lodge a PAYEreturn for each tax period no later than 7days after the end of the period.
- A PAYEreturn must –
- be lodged with the Comptroller.
- be in the form prescribed by the Comptroller; and
- contain the information specified in that form.
A person, who fails to pay PAYEpayable to the Comptroller under this Act on or before the due date for payment, is liable to interest on the amount unpaid at the rate of 1.5% per month or part thereof, calculated from the date the payment was due to the date the payment is made.
Offences & Penalties
Failure to File attracts a penalty of $500 or 5% of the Tax Payable, (whichever is greater), and an additional $100 or 1% each month that failure to file continues.