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Guam

Overview

Guam is an organized, unincorporated territory of the United States of America that comprises the island of Guam in the western North Pacific Ocean. It is one of five U.S. territories with an established civilian government. The island's capital is Hagåtña (formerly Agana). Guam is the largest and southernmost of the Mariana Islands. The Chamorros, Guam's indigenous inhabitants, first populated the island approximately 4,000 years ago. It is home to the Naval Base Guam, a strategic U.S. naval base located on Apra Harbor and occupying the Orote Peninsula. The economy of Guam depends mainly on US military spending and on tourist revenue. In 2018, Guam’s GDP was $5.92 billion.

Guam corporations are subject to income tax on their income from all sources. Other corporations doing business on Guam incur income tax liabilities to Guam on all Guam source income. Corporations not engaged in business on Guam are liable to a 30% tax on certain types of income from Guam sources. The highest corporate tax rate is 35% and the last is 21%. The Guam Economic Development and Commerce Authority (GEDCA) has a variety of tax incentives to encourage new investment to Guam. GEDA grants Qualifying Certificates to investors based on investment commitment and ability to generate new employment, replace imports, reduce consumer prices, or create vital new facilities. Qualified firms may receive: • 75% tax rebate on corporate income tax for up to 20 years; • Abatement on real property income taxes up to 10 years; • 75% rebate on corporate dividend tax up to 5 years; • Abatement on gross receipts tax on petroleum and alcoholic beverages made in Guam up to 10 years.