Guam Business Resource Guide

5.1.GUAM TAX STRUCTURE
The U.S. Congress created the Territorial Government
of Guam as a separate taxing jurisdiction by
enactment of the Organic Act of Guam in 1950.
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.
5.2.GROSS RECEIPTS TAX (GRT)
5.2.1 All businesses operating predominately in
Guam are required to have an appropriate
Guam Business License, and to register for a
GRT number.
5.2.2 All sales by your business are subject to
GRT;
5.2.3 All businesses with sales over $500,000 per
year must pay 4% GRT on all sales to the
Treasurer of Government.
5.2.4 All businesses with sales less than or equal
to $500,000 per year must pay 4% GRT on all
sales over $50,000 to the Treasurer of Government.
5.2.5 Businesses with sales of less than $50,000
per year must file monthly GRT reports but
are exempt from paying the tax.
5.2.6 GRT report filings and payments must be
made monthly, no later than the 20th of the
month after the month that the revenues/
receipts are generated.
5.2.7 Businesses that add an additional 4% to the
cost of an item to cover the cost of GRT
may and should elect to pay "Visible GRT" on
the GRT filing form.
5.2.8 Wholesalers and certain other taxpayer
groups are exempt from GRT, or entitled to
rebates. Please refer to Section 7 below, or
seek additional information from the Director
of Revenue and Taxation.
5.3 INDIVIDUAL, PAYROLL, OR PERSONAL INCOME
TAX
5.3.1 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. Nonresidents
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
must file Schedule C with their 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.
5.3.2 Individual income is progressively taxed at
marginal rates ranging from 10% to 35% depending
on the employee's pay level. These
taxes are withheld from an employee's
wages by the employer. The employer holds
these taxes until it is time to deposit them
with either the Guam or federal government.
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.
5.3.3 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 filing a return or paying taxes falls
on a Saturday, Sunday, or legal holiday, you
may do that file and/or pay on the next
business day.
5.3.4 All businesses must file the Employer’s
Quarterly Tax Return reporting the wages of
their employees. Other related forms and
payments must be filed and paid to the
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