NO. 60/2015 DATE: July 22, 2015
PROMOTERS OBLIGATION TO PAY TAXES
ST. GEORGE’S, GRENADA, Wednesday, July 22, 2015: The Inland Revenue Division of the Ministry of Finance and Energy wishes to advise promoters and other affiliates of the entertainment industry of Grenada of their tax obligations.
· Any person who arranges the staging of public entertainment has an obligation to pay taxes to the Government of Grenada and should register with the Comptroller of the Inland Revenue Division, Ministry of Finance and Energy.
· All Registered Businesses/Persons must file their returns on or before the stipulated due date, for payment according to law, maintain accurate and proper records and adhere to all the requirements under the various tax laws.
Taxes that may be applicable to promoters are Withholding Tax, Value Added Tax (VAT), Income Tax and Annual Stamp Tax. The following are explanations of these taxes:
VALUE ADDED TAX
NB: All promoters must register for VAT.
VAT is charged at the rate of 15% on the value of a ticket; or charge for entry.
- Price (s) advertised or quoted by a registered person for an activity must be VAT inclusive
- All VAT Returns must be submitted by the 20th of the following month after the month in the event was held.
WITHHOLDING TAX(Income Tax Act No.36 of 2014)
Section 50 of the Income Tax Act, subsection 1applies to a promoter who makes payment to an artiste or any person who provides a service to the promoter, who is not resident in Grenada, the promoter shall deduct tax at the rate specified and pay the amount to the Comptroller within seven days after the date of payment or credit to the payee.
Rate:The tax shall be deducted at a rate of 15% of every dollar of such payment and shall be the final liability in respect of such income.
This tax is collected on the income of individuals, sole traders, corporations or other legal entities.
- Individuals/Sole Traders: 15% and 30%
The first $36,000 is exempt. Earnings greater than $60,000 per year 15% is charged on the first $24,000 ($36,000 - $60,000 after exemption) and 30% on the remaining income. Both are added and that determines the Total Income Tax due.
For earnings less than $60,000 but greater than $36,000, 15% is applied after the exempt amount.
· Companies 30% on net profit.
ANNUAL STAMP TAX
Every person who is engaged in a business shall pay to the Comptroller an Annual Stamp Tax in accordance with the provisions of this Act.
The Stamp Tax charged for any particular year and shall be due and payable in nine equal monthly installments between the months of April and December of the year in which the tax is payable.
Rates: 0.25% in respect of businesses with gross receipts,over $30,000 per year but not exceeding $100,000 per year;
0.5% in respect of businesses, with gross receipts exceeding $100,000 per year.
NB: Annual Stamp Tax is subject to rate and band change in 2016.
All taxes are can be paid online through the Ministry’s online portalwww.eservices.gov.gd(Please use Chrome or Firefox platform), the Inland Revenue Division Cash Office at the Ministry of Finance, or any District Revenue Office.