As a Grenadian, with a Grenada domiciled business, you would be liable for corporate taxes on the income of that business, whether or not the tax regime in Grenada is less punitive than that of your home country would obviously depend on your declared revenues. LLC and IBC are the most common forms of companies in Grenada. LLC stands for a limited liability company, while IBC is an international company that can only provide services to foreign partners. Companies in Grenada pay tax on net income, VAT, social security contributions from salaries and a withholding tax. The corporate tax is levied at a rate of 28%. The tax base is the resident company's profit from all transactions. Non-residents pay the tax only on profit from sources in Grenada. The Value Added Tax (VAT) is levied at the standard rate of 15%. But there are some exemptions: 20% - for mobile operators; 10% - for hotels and diving companies; 0% - for companies engaged in certain activities, e.g. supplying staple food or water. VAT is paid by companies with an annual taxable income of at least EC$300,000. Social contributions are 4% of an employee's salary. The withholding tax is paid at the rate of 15% dividends interest, and royalties to a nonresident company.
