Guam has its own income tax system based on the same tax laws and rates as those of the United States Internal Revenue Code. Requests for advice on Guam`s residency and tax matters should be directed to: (ii) With respect to taxes levied on Guam, the Guam Territorial Income Tax (48 U.S.C. 1421i). (2) Persons covered. Paragraph (b) of this Section applies only to an individual described for a tax year in paragraph (a)(2) of Article 1.935-1 of this Chapter (Income Tax Regulations) and (or in the case of a joint tax return, that person and his or her spouse) – (f) transfers of funds. Transfers of funds between the United States and Guam necessary to carry out the provisions of this section shall be made, as appropriate, for both Governments, but at least once per calendar year. In accordance with subparagraph (b) of this section, only net balances shall be transferred between the two Governments. In addition, the amounts transferred pursuant to point (b) of this Section may be determined on the basis of estimates and not on the basis of actual amounts resulting from information provided by taxpayers, it being understood that net revenue for 1973 and every three calendar years thereafter shall be carried forward on the basis of information provided by taxable persons in accordance with point (d) of this Section. For the purpose of facilitating the transfer of funds pursuant to this section, the Commissioner of Internal Revenue and Taxation of Guam shall exchange such information, including copies of tax returns, in order to ensure that the provisions of Section 7654 and this Section are properly applied. (e) Military personnel in Guam. The Commissioner of Internal Revenue ensures that Guam receives the amount of taxes paid by the United States under Section 3402 on salaries paid to members of the armed forces stationed in Guam, but Guam is not subject to Guam`s income tax in respect of such salaries under Section 514 of the Civil Assistance to Soldiers and Seamen Act of 1940 (50 App. U.S.C. 574).
Section 514 of the Act provides that, for purposes of taxation of income in Guam, a person shall not be deemed to have lost his or her residence or domicile in the United States solely because he or she has lost his or her residence or domicile in the United States solely because he or she has not been taken into account by reason of military or naval orders and the military or naval service allowance of such a person who is not resident in Guam: is absent. or resident in Guam, shall not be considered income for services provided in Guam or from sources located in Guam. Any amount paid to Guam under this paragraph in respect of a member of the armed forces referred to in subparagraph (a) (2) of this section shall be taken into account in determining the amount to be paid to the Treasury of Guam in accordance with paragraph (b)(1)(ii) of this section. For purposes of this paragraph, the term “United States Armed Forces” has the meaning of section 301.7701-8 of this chapter. This paragraph shall not apply to salaries for service in Guam performed by members of the United States Armed Forces that do not constitute remuneration for military or naval service. In determining the amount of taxes to be levied under this paragraph for remuneration for services rendered in Guam by members of the United States Armed Forces, the special procedure agreed upon with the Department of Defense in 1951 shall not apply to remuneration paid after 31 December. 1974. Under this procedure, the tax deducted under Section 3402 on such remuneration for services rendered in Guam in April and October of each year was to be projected for the corresponding six-month period to which the base month belongs, so that an estimated amount was to be obtained for the semi-annual withholding to be covered. Department of Revenue and Taxation Taxpayer Services Division P.O. Box 23607 GMF, Guam 96921 (1) Scope. Section 7654 and this section set forth the general procedures to be followed by the Government of the United States and the Government of Guam in apportioning among the two Governments income tax revenues for a taxation year beginning after 31 December 1972 for each person referred to in paragraph 2 (a).
and point (e) of this section. To the extent that Section 7654 and this Section are inconsistent with the provisions of Section 30 of the Guam Organic Act (48 U.S.C. 1421h) relating to duties and taxes payable to the Guam Treasury and accountable to the Government of Guam, this Section 30 is replaced. (iii) For the purposes of this subparagraph, any insufficient payment of taxes shall be applied pro rata to income from sources in the United States, Guam, or sources other than the United States or the United States. Guam shall be deemed to be attributable and apportioned among the United States and Guam in accordance with the rules set forth in subparagraph (b) of this Article. (3) Reference rules. The source of income shall be determined on the basis of the principles set forth in sections 861 to 863 and the regulations contained therein or, as the case may be, in the articles made applicable to Guam by the income tax of the Territory of Guam.