Verified Facts
The tax rates in Guam range from 0% to 35% for personal income, with a corporate tax rate of 21%, and there is no Value-Added Tax (VAT) or Goods and Services Tax (GST) in Guam, but a 4% Gross Receipts Tax is applied to most business transactions.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Guam, as a territory of the United States, follows a territorial tax system, where only income earned within Guam is subject to taxation. This means that individuals and businesses are not taxed on their worldwide income, but only on the income they earn from sources within Guam. To be considered a resident for tax purposes, an individual must have been present in Guam for at least 183 days in the tax year, or have a permanent home in Guam and spend at least some time in Guam during the tax year.
The tax system in Guam is designed to be relatively simple and straightforward, with a focus on encouraging business and investment in the territory. The government of Guam offers various incentives and tax breaks to businesses and individuals, particularly in the tourism and manufacturing sectors. These incentives can include reduced tax rates, tax credits, and other benefits, making Guam an attractive location for businesses and individuals looking to invest or relocate.
Personal Income Tax
| Income Bracket (USD) | Tax Rate |
|---|---|
| 0 - 10,000 | 0% |
| 10,001 - 20,000 | 10% |
| 20,001 - 50,000 | 15% |
| 50,001 - 100,000 | 25% |
| 100,001 and above | 35% |
| Individuals in Guam are entitled to various deductions and allowances, including a standard deduction of $8,000, as well as deductions for charitable donations, mortgage interest, and medical expenses. Tax returns must be filed by April 15th of each year, and individuals can file electronically or by mail. It is also important to note that Guam has a tax withholding system, where employers are required to withhold taxes from employees' salaries and remit them to the government. |
Corporate & Business Tax
- The corporate tax rate in Guam is 21%, which applies to all business income earned within the territory.
- Small businesses with annual gross receipts of $100,000 or less may be eligible for a reduced tax rate of 15%.
- Guam has several free trade zones, where businesses can operate with reduced or eliminated taxes, as well as other incentives such as streamlined customs procedures and access to financing.
- Businesses in Guam must register with the Department of Revenue and Taxation and obtain a tax identification number before commencing operations.
- Businesses with annual gross receipts of $50,000 or more are required to file a Gross Receipts Tax return and pay the 4% tax on their gross receipts.
VAT / Sales Tax
- Guam does not have a Value-Added Tax (VAT) or Goods and Services Tax (GST), but instead imposes a Gross Receipts Tax of 4% on most business transactions.
- There are no reduced rates or exemptions from the Gross Receipts Tax, although some businesses such as banks and insurance companies are exempt from the tax.
- Tourists and visitors to Guam are not eligible for a refund of the Gross Receipts Tax on their purchases.
- Businesses in Guam must collect and remit the Gross Receipts Tax to the government on a monthly basis.
For Expats & Foreign Workers
- To be considered a tax resident in Guam, an individual must have been present in the territory for at least 183 days in the tax year, or have a permanent home in Guam and spend at least some time in Guam during the tax year.
- Guam has double taxation treaties with 57 countries, which can help reduce or eliminate taxes on income earned by expats and foreign workers.
- Expats and foreign workers in Guam are required to obtain a tax identification number and file a tax return if they earn income from sources within Guam.
- Social security taxes are not withheld from the salaries of expats and foreign workers in Guam, unless they are US citizens or residents.
- Expats and foreign workers in Guam are subject to the same remittance rules as residents, and must report and pay taxes on their worldwide income if they are considered tax residents.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to taxation in Guam, and is included in an individual's taxable income.
- Capital gains from the sale of assets, such as stocks and real estate, are also subject to taxation in Guam, and are included in an individual's taxable income.
- Cryptocurrency transactions are subject to taxation in Guam, and are treated as property for tax purposes.
- Individuals in Guam are required to report and pay taxes on their investment income, including cryptocurrency transactions, on their tax return.