Grenada will enforce a 15 per cent tax on all games of chance winnings above EC$10,000 (One EC dollar = US$0.37) from Wednesday.
The amendment to the Income Tax Act of 2010 which provides for the tax to be levied was approved in 2014 by the then-Keith Mitchell administration but was never enforced.
According to the legislation, taxes are to be paid on “winnings of cash and any reference to an amount and to payment in relation to winnings”.
“A withholding tax of 15 per cent will only be charged on the excess over EC$10,000 and not the full winnings,” explained Permanent Secretary in the Ministry of Finance Mike Sylvester.
The law will apply to all games of chance, including lottery and bingo.
Payment of the tax to Government will not be the duty of the winner but the promoter of the game of chance who must make the deduction and pass it on to the Ministry of Finance.