The Qualifying Certificate Program created under Public Law 8-80 and amended under PL 20-178 and PL 22-159 is administered by the Guam Economic Development Authority. It was conceived in 1965 as an economic incentive tool to encourage investment in activities that would strengthen the island economy, enrich its growth, and enhance the quality of life in Guam. This program has proven to be highly successful, particularly in the development of Guam’s primary industry - Tourism. To spur diversification in other industries uncorrelated to tourism, public law PL 23-109, PL 24-266, and PL 23-127 were enacted to provide attractive tax incentives for financial services, trusts and recycling.

  • Up to 75% Rebate of corporate income tax for up to twenty (20) years.
  • Up to 75% Rebate of corporate dividends tax for up to five (5) years.
  • Up to 100% abatement of real property tax for up to ten (10) years on property utilized by the QC beneficiary to operate its business.
  • Up to 100% abatement of Business Privilege tax on income derived from the sale of alcoholic beverages and petroleum products manufactured in Guam for up to ten (10) years.
  • The Authority also offers special incentives for Captive Insurance, Trusts, and Recycling (PL 23-109, PL 24-266, and PL 23-127).
LOCAL PARTICIPATION (12 GCA, Div. 2, Chapter 58, §58108)

Preference shall be extended to applicants, which have fifty-one percent (51%) or greater portion of local investment, as controlled by bona fide Guam residents.


The beneficiary shall make a community contribution of 0.5% of the total hotel construction costs to the Guam Economic Development Authority. The terms of the contributions shall be subject to negotiations between GEDA and the developer.


(12 GCA, Div. 2, Chapter 58, §58104) Any trust, partnership, sole proprietorship, Limited Liability Partnership, Limited Liability Company, or corporation, formed under the laws of Guam and licensed to do business in Guam, which is engaged, or about to engage in any of the following activities:

  1. Green Technology (Energy Efficiency, Renewable Energy and Environmental Cleanup)
  2. The manufacture, distribution and sale of non-petroleum based fuels.
  3. Agriculture
  4. Aquaculture
  5. Mariculture
  6. Manufacturing
  7. Commercial fishing
  8. Services
  9. Tourism
  10. Improvement of real property by constructing and selling affordable homes thereon, and for other purposes which are specifically determined by the Authority to be beneficial, desirable, and necessary for the economic development of Guam.
  11. Insurance, commercial insurers, reinsurers, or captive insurers which meet the requirements of 22 GCA, chapter 15, article 3
  12. Export Trading Companies as defined in 11 GCA, §26101(d), if the main office of the export trading company is on Guam
  13. Producing water or disposing of wastewater, or both, jointly with the Guam Waterworks Authority
  14. Operating on a military base on Guam a Base Operating Service Contract (Repealed by PL 31-88).
  15. A global internet infrastructure services company providing internet connectivity and co-location facilities and its/their tenant-sellers in the sales of goods, services and information over the internet.
  16. Recycling
  17. Guam based trusts
  • Agriculture, Aquaculture, Mariculture - $100,000
  • Manufacturing - $100,000
  • Home Manufacturing - $100
  • Commercial Fishing - $25,000
  • Services - $50,000
  • Tourist Facilities - $50,000
  • Captive Insurance Companies - $100,000
  • Export Trading Company - $100,000
  • Industrial Facilities - $100,000
  • Hotels, Motels - $500,000
  • First Class Hotels - $5,000,000
  • Business Class Hotels - $1,000,000
  • Recycling - $100,000
  • Affordable Housing - Minimum construction of no less than twenty-five (25) affordable housing units

12 GCA, Div. 2, Chapter 58, §58143) Fees consist of  a one-time application fee and an annual surveillance fee assessed through the life of  the Qualifying Certificate.

  • Agriculture, Aquaculture, Mariculture - $150 (Application Fee) / $500 (Annual Surveillance Fee)
  • Home Manufacturing - $100 (Application Fee) / $100 (Annual Surveillance Fee)
  • Manufacturing - $750 (Application Fee) / $2,000 (Annual Surveillance Fee)
  • Commercial Fishing - $250 (Application Fee) / $1,000 (Annual Surveillance Fee)
  • Services (includes trusts) $750  (Application Fee) / $2,000 (Annual Surveillance Fee)
  • Tourism $1,000(Application Fee) / $3,000 (Annual Surveillance Fee)
  • Captive Insurance Companies $750 (Application Fee) / $1,000 (Annual Surveillance Fee)
  • Export Trading Companies $750 (Application Fee) / $1,000 (Annual Surveillance Fee)
  • Motels under construction $750(Application Fee) / $2,000 (Annual Surveillance Fee)
  • Motels in Operation $750 (Application Fee) / $25 per rooom (Annual Surveillance Fee)
  • Hotels under Construction $1,500(Application Fee) / $3,000 (Annual Surveillance Fee)
  • Hotels in Operation $1,500 (Application Fee) / $45 per room (Annual Surveillance Fee)
  • GWA Joint venture partner $750 (Application Fee) / $1,000 (Annual Surveillance Fee)
  • Recycling $750(Application Fee) / $2,000 (Annual Surveillance Fee)
  • Affordable Housing $750 (Application Fee) / $1,000 (Annual Surveillance Fee)

In response to the demand and anticipated growth of Guam’s tourism industry, the Special Hotel Qualifying Certificate (QC) program was created under Public Law 32-233, specifically for the development of one thousand six hundred (1,600) new hotel rooms by the year 2020, a goal set forth by the Guam Visitors Bureau Vision 2020 plan. This Special Hotel Qualifying Certificate provides additional incentives to hotel developers in order to meet this goal.


Developers and owners are allowed a tax rebate, exemption or abatement in an amount equal to ten percent (10%) of their total construction costs, which can be applied by the developer, at their discretion, to the following taxes:

  • 50% of Unpledged Business Privilege Tax payable to the government of Guam for twenty (20) years.
  • 75% Income Tax Rebate for twenty (20) years.
  • 100% Real Property Tax Abatement for ten (10) years on property utilized by the beneficiary for activities stated in the QC.
  • 100% of Use Tax Exemption with respect to the property used to construct, furnish and equip the new facility construction or substantial expansion of an existing building.

Fees consist of a one-time application fee and an annual surveillance fee assessed until the QC beneficiary has exhausted the total dollar amount of its QC benefit. Project Application & Modification Fee: $5,000.00 Annual Surveillance Fee:

  1. Under Construction $3,000.00
  2. In Operation $50/per room

The beneficiary shall make a community contribution of 0.5% of the total hotel construction costs to the Guam Economic Development Authority. The terms of the contribution shall be subject to negotiations between GEDA and the developer.


Pursuant to Article 2 of Title 1 GCA Chapter 8, the beneficiary shall make provisions for the inclusion of local art in their building.


The Special Hotel Qualifying Certificate program shall remain in effect until the earlier of:

  1. Five (5) years
  2. 1,600 hotel rooms have been committed to be built or
  3. A China Visa Waiver or China Visa Parole declaration has been approved for Guam

It has been proven in communities that have successful recycling programs that recycling is best undertaken through partnerships of the private sector and government. Government support of recycling as an essential mean protects the environment, manage the municipal solid waste generated by the community, and extend the life of our new landfill. The first step to developing sustainable recycling is to divert discarded materials from the island’s landfill by creating value for potentially recyclable materials so there is economic incentive to collect and ship the materials off island to recycling companies.

Public Law 25-127 which provides recycling and transshipment companies with tax benefits under the Guam Economic Development Authority’s Qualifying Certificate Program is designed to encourage investment opportunities in recycling and transshipment activities in order to help minimize the volume of Guam’s waste stream entering the landfill as well as encourage the practice of recycling and composting within our Island community.

ELIGIBILITY (12 GCA, Div. 2, Chapter 58, §58147)

Any entity licensed to do business in Guam that has been issued a solid waste permit from the Guam Environmental Protection Agency in which eighty percent (80%) of its operations is specifically committed to recycling activities.


TAX INCENTIVES (12 GCA, Div. 2, Chapter 58, §58147 & §58147.1)
  • 100% Gross Receipts Tax exemption for a period of ten (10) years
  • 100% Use Tax exemption for a period of ten (10) years
  • 100% Corporate Tax Rebate for a period of ten (10) years subject to:
    • Revenues subject to rebate are to be certified by a CPA
    • Provide proof that a minimum two thousand (2,000) cubic feet or forty thousand (40,000) pounds of recyclable materials have been diverted from Guam’s waste stream during the taxable year
    • For shipping companies claiming a rebate must provide proof that the transshipped materials are recyclable
WAIVERS (12 GCA, Div. 2, Chapter 58, §58147.2)
  • Docking and stevedoring fees to shipping companies for transshipments of recyclable materials for a period of ten (10) years
    • Shipper must hold a GEPA permit
    • Characteristics and volume of recyclable materials to be shipped must be certified by a CPA
  • TAX BENEFITS issued by the Guam Economic Development Authority
    • The absence of federal income taxes, and the fact that interest earned by banks through the operation of an offshore lending facility in Guam is not treated as a Guam-source income for tax purposes are also powerful incentives for investment.
      • QC application fee: $750
      • Annual surveillance fee: $2,000
  • LICENSING issued by the Guam Department of Revenue & Taxation
    • Manufacturer: $50 - $100 (estimate only)
    • Services: $25 - $75 (estimate only)
    • Registration: $60 - $1,000 (depending on firm classification)
  • PERMITS issued by the Guam Environmental Protection Authority
    • $25 - $500 (depending on type of permit)
    • Permit application, instruction booklet and regulations can be downloaded at

In July 1996, the Governor of Guam signed Public Law 23-109, which authorizes 100% abatement and rebates of corporate and gross receipts taxes respectively to qualified insurance underwriters and captive insurance companies incorporated in Guam. Spurred by increasing inquiries from insurance underwriters throughout the world, the government of Guam has enacted Public Law 24-266 and Public Law 24-11; technical amendments to the original captive law to provide an attractive environment for risk and insurance management companies to locate their Pacific headquarters in Guam.


General Headnote 3(a)(iv) of the U. S. Harmonized Tariff Schedule provides a valuable trade status to Guam and other insular areas of the United States. Under the designation, product that are assembled or manufactured in Guam may enter the customs territory of the United States free of duty as long as they are in compliance with General Headnote 3(a)(iv) and applicable customs regulations.


Articles assembled or manufactured in Guam, when imported into the United States, must not contain foreign  materials valued at more than seventy percent (70%) of the total value of the final appraised value of the manufactured article. Appraised value as determined under sections 402 and 402a of the Tariff Act of 1930, as amended.

Duty Free entry of these articles also requires them to be shipped directly to the customs territory of the United States and the articles are not subject to importation quotas. Customs regulations 19 CFR 7.3 requires that a Certificate of Origin for (Customs Form 3229) must be completed in connection with the entry of merchandise claimed free of duty under General Headnote 3(a)(iv). In determining whether an article is manufactured or produced within the scope of General headnote 3(a)(iv), a new and different article with a new name, character and use must result from the operations performed in Guam. In this respect, an article imported into the possession in a substantially complete condition does not, without extensive modifications further performed on it resulting in a new and different article of commerce, come within the scope of General Headnote 3(a)(iv).


The test to determine 70 percent of the total value added limitation for articles manufactured, produced or assembled in Guam is done by comparing the actual purchase price of the foreign materials imported into Guam, including the cost of transportation, and the final appraised value in the United States determined in accordance with the value provisions of the tariff laws of the United States.

Guam Customs & Quarantine Agency
P. O. Box 21828
G.M.F., Guam 96921
T: (671) 475-6201/2
F: (671) 475-6227

Another trade incentive program allows products manufactured in Guam to be imported by participating nations at a reduced tariff rate. Guam currently has arrangements with the following countries: Japan, Australia, and the European Common Market nations. Requirements of each participant vary and interested exporters should contact the appropriate trade office of the particular country of destination.



Qualifying Certificate Program Fact Sheet
Special Hotel Qualifying Certificate Program
Qualifying Certificate Beneficiaries Profile as of June 25, 2019
Certificate of Compliance Listing: 2012-Present
Certificate of Compliance Listing: 2005-2011
Guam Community Recycle Tax Incentive
Guam Trust Incentives Act Program
Captive Insurance Qualifying Certificate

Guam Environmental Protection Agency
Port Authority of Guam
Guam Chamber of Commerce
Guam Customs & Quarantine Agency