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GUAM
TAX STRUCTURE
Guam
residents pay a “mirrored” U.S. income tax in
which the U. S. Internal Revenue Service’s code of
laws is applicable. Through enactment of the
Organic Act of Guam in 1950, the U.S. Congress created
the Territorial Government of Guam as a separate
taxing jurisdiction. Section 31 of the Act
provides that the income tax laws in force in the
United States shall be the income tax laws of Guam,
substituting Guam for the United States where
necessary and omitting any inapplicable or
incompatible provisions. The U.S. Internal Revenue
Code with such changes constitutes the Guam
Territorial Income Tax Law thus all taxes
are paid only to the territorial government, Guam
residents and domestic business entities are not
subject to U.S. Federal tax.
There
is only one taxing authority in the Territory, the
Government of Guam. The administration,
regulatory, and enforcement function for taxes in Guam
is vested with the Department of Revenue &
Taxation; which is also tasked with the registration
of business entities, issuance of general business
licenses and regulated licenses such as Alcoholic
beverage licenses, insurance, securities and banking
and recordation of secured transactions under the Guam
Uniform Commercial Code.
There
is the usual range of other types of local taxes, such
as, liquor, tobacco, gasoline, real property, gross
receipts, use, admissions, amusement, recreational
facilities, and hotel occupancy. However, There
are no separate municipal, county, school district or
improvement district taxes and there is no sales tax
imposed in Guam.
Taxes
assessed in Guam:
-
Gross
Receipts Tax (aka Business Privilege Tax)
-
Businesses
- 4% on monthly gross income due by 20th day
of following month income received or accrued
-
Commercial
banks & lending institutions – 4% on
annual net income due by 90th day following
tax year
-
Use
Tax – 4% assessed on personal property imported
into Guam.
-
not
applicable to items imported for resale, to
used goods, to property with value of $1,000
or less and to aircraft parts & materials
-
Hotel
Occupancy Tax – 11% of daily room rate
-
Alcoholic
Beverage Tax – tax on all imported alcoholic
beverages, locally manufactured alcoholic
beverages are exempted
-
$10
per wine gallon on distilled beverages
-
$2.75
per wine gallon on vinous beverages
-
$0.04
per each 12 fl ounce on malted beverage
-
Tobacco
Tax – tax on all imported tobacco products
-
$0.35
per each 100 cigarettes
-
10%
of landed cost of cigars
-
$0.35
per pound for all others
-
Real
Property Tax
-
Amusement
Tax - $50 to $250 on various types of coin
operated machines
-
Recreational
Facilities Tax - $5 to $100 on various types of
facilities such as bowling alleys, golf courses,
billiard halls, shooting galley, etc.
-
Liquid
Fuel Tax – levied on a distributor of liquid
fuel
Personal
Income Tax
Individuals
who are citizens or residents of Guam are required to
report their income from all sources when computing
their Guam taxes. Their income taxes must be paid into
the Treasury of Guam. Non-residents except those who
acquired their U.S. citizenship through the Organic
Act, or through naturalization proceedings in the
District Court of Guam, incur income tax liability to
Guam only on income derived from Guam sources.
Self-employed individuals who are covered by the
Federal Old Age Insurance and Schedule C of individual
income tax return Form 1040.
A U.S.
citizen who is a resident of Guam at the last day of
the taxable year (usually December 31) will be
required to file an individual income tax return in
Guam reporting his or her worldwide income. In such
case the U.S. Internal Revenue Code provides that no
return need be filed with the U.S. Internal Revenue
Service.
Guam
individual tax rates are the same as those in the U.S.
Internal Revenue Code and can be found in Section 1 of
the Guam Territorial Income Tax Law.
Individual
income tax returns for the calendar year are due on or
before April 15 of the following year. Individuals
reporting on a fiscal year basis must file their
returns on the 15th day of the fourth month following
the close of the fiscal year. When the due date for
doing any act for tax purposes - filing a return,
paying taxes, etc., falls on a Saturday, Sunday, or
legal holiday, you may do that act on the next
business day.
Corporate
Tax
Guam
domestic corporations are subject to income tax on
their income from all sources at the same rate
schedule published by the U. S. IRS for the applicable
tax year. Other corporations doing business on
Guam incur income tax liabilities to Guam on all Guam
source income. Corporations are required to file
an income tax return for the calendar year on or
before March 15 of the following year. Corporations on
a fiscal year basis must file income tax return on the
15th day of the third month following the close of the
fiscal year.
Corporations
not engaged in business on Guam are liable to a 30%
tax on certain types of income from Guam sources. The
tax rates for corporations doing business on Guam can
be found in Section 11 of the Guam Territorial Income
Tax Law. However, with the passage by the U.S.
Congress and signing into law (by President George
Bush) of the Guam Foreign Investment Equity Act –
U.S. Public Law 107-212 on August 21, 2002 it provided
Guam with the authority to tax foreign corporations
doing business in Guam at the same rates that the 50
U. S. states currently are able to access relative the
existing tax treaties the U.S. has with certain
foreign nations such as Japan, Canada, Russia, Korea
to name a few.
Contact
Information:
Main Business Office
Monday - Friday 8:00 a.m. - 5:00 p.m.
Mailing: P. O. Box 23607 GMF, Guam 96921
Telephone:
Directors Office (671) 475-1817/19
Business Licensing & Registration (671) 475-
1835/36
Taxpayer Services (671) 475- 1821/1842/1836
Insurance & Banking Commissioners Office –
(671) 475 – 1844/46
Patents & Trademarks (671) 475- 1826/27
Fax: (671) 472 - 2643
Website: www.guamtax.com
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