MINISTRY OF FINANCE CLARIFIES CHARGEABLE INCOME
ST. GEORGE’S, GRENADA Wednesday, January 22, 2014: The Ministry of Finance and Energy wishes to inform all employers and the general public that based on the new Income Tax Regime “Chargeable Income”or income on which taxes will be charged, is any income over EC$3,000.00 per month or over EC$36,000.00 per year. This means that persons who earn up to EC$3,000.00 per month or up to EC$36,000.00 per year will NOT BE REQUIRED TO PAY Income Tax, as the first EC$3,000.00 per month or EC$36, 000 per year is NOT chargeable.
For example, for a person who earns EC$5,000.00 per month or $60,000.00 per year, their chargeable income will be:
($3,000.00) - exemption
$2,000.00 – the amount on which tax will be charged per month or chargeable income.
$5,000.00 *12 = $60,000
($3,000.00*12) = ($36,000) - exemption
$24,000.00 - the amount on which tax will be charged per year or
In accordance with the Income Tax (Amendment) Order SRO. 1of 2014, persons who earn over EC$3,000.00 and up to EC$5,000.00 will pay 15% (the maximum chargeable income in this bracket being EC$24,000.00). Persons earning over EC$5,000.00 per month or over EC$60,000.00 per year will be required to pay 30% on the chargeable income in excess of EC$24,000.00. Companies will pay 30%.