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)
Use Tax – 4% assessed on personal property imported into Guam.
- 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
Hotel Occupancy Tax – 11% of daily room rate
Alcoholic Beverage Tax – tax on all imported alcoholic beverages, locally manufactured alcoholic beverages are exempted
- not applicable to items imported for resale, to used goods, to property with value of $1,000 or less and to aircraft parts & materials
Tobacco Tax – tax on all imported tobacco products
- $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
Real Property Tax
- $0.35 per each 100 cigarettes
- 10% of landed cost of cigars
- $0.35 per pound for all others
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
- Upon the sale of land and/or buildings - 35% of the full cash value
- On the assessed value - .005% for land and .01% for building
- $0.10/gallon on diesel
- $0.04/gallon on aviation fuel
- $0.11/gallon on all other fuel
Foreign Sales Corporations
Foreign Sales Corporation (FSCs), which are licensed to do business on Guam, may qualify for certain exemptions or rebates of income, real property, gross receipts and use taxes. Information concerning this can be obtained from the Director of Revenue and Taxation.
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.
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.
Main Business Office
Monday - Friday 8:00 a.m. - 5:00 p.m.
Mailing: P. O. Box 23607 GMF, Guam 96921
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