Tax in Guam

Who is the tax authority?

The Department of Revenue and Taxation (DRT) administers Guam's tax system. DRT sits under the Government of Guam in Hagåtña.

The legal foundation is IRC §7654 and the Organic Act of Guam 1950, which created the Mirror Code relationship. Guam-source income of Guam residents is taxed by DRT under Guam law — the IRS does not collect it directly.

Guam's economy centers on tourism (Japanese, Korean, and Taiwanese visitors), federal government services, and a large US military presence. Andersen Air Force Base and Naval Base Guam are major economic anchors in the territory.

What is the tax year and when are returns due?

Guam's tax year is the calendar year, running 1 January through 31 December — matching the US federal schedule. Annual returns are due 15 April for the prior year.

Who is a Guam tax resident?

A bona fide resident of Guam files income tax returns with DRT only, not with the IRS, for Guam-source income. The bona fide residency framework derives from IRC §935 and applicable Treasury regulations.

Guam residents are US Citizens by birth under the Organic Act of Guam 1950. This distinguishes Guam from American Samoa, where residents hold US National (not Citizen) status by default.

Military personnel stationed at Andersen Air Force Base or Naval Base Guam may retain their state-of-domicile residency for federal purposes — a common complication requiring specialist guidance.

What are the personal income tax rates?

Guam applies the federal IRC income tax brackets under the mirror-code framework. The rates are identical to US federal brackets — but returns go to DRT, not the IRS.

Standard deductions and personal exemptions follow the mirror-IRC amounts. Withholding from wages uses the same tables as federal withholding, adapted for Guam.

How does corporate tax work?

Guam's corporate income tax mirrors the federal 21% flat rate under the TCJA 2017 mirror-code framework. Most corporations file a mirror of IRS Form 1120 with DRT.

Withholding taxes on dividends, interest, and royalties paid to non-bona-fide-residents of Guam follow the mirror-IRC withholding rules. Treaty residents covered by US bilateral agreements may access reduced withholding rates.

What is the Business Privilege Tax and how does indirect tax work?

Guam has no VAT and no federal sales tax applies in the territory. Instead, the Business Privilege Tax (BPT) at 4% on gross receipts is Guam's primary indirect tax mechanism.

BPT returns are filed monthly with DRT. The BPT base is gross receipts — it is a turnover tax, not a value-added tax, so input-tax recovery does not apply.

Mirror-IRC framework: how Guam tax differs from filing with the IRS

What makes Guam's status distinct — Organic Act 1950 and the Marianas

Guam is not a US state. It has no voting representation in Congress. Guam residents do not vote in US presidential elections. These political features affect federal program eligibility and have no direct tax consequence for most filers — but they shape Guam's governance context.

What is the currency framework?

What is the treaty network?

Guam is not an independent treaty jurisdiction. The US treaty network (~70 bilateral agreements) extends to Guam via the mirror-code framework, but many US DTAs include territorial carve-outs that limit or exclude Guam coverage. Individual treaty analysis is required before applying any reduced withholding rate.

Guam is not a separate signatory to any bilateral income tax treaty. Guam has not implemented OECD Pillar Two separately — the US federal government has not enacted Pillar Two, and Guam mirrors the US framework.

Where does Guam sit in the US Pacific territories cohort?

Guam anchors the US Pacific territories cohort alongside American Samoa (AS), Northern Mariana Islands (MP), and US Virgin Islands (VI). The broader Western Pacific region also includes sovereign Compact of Free Association states — Federated States of Micronesia (FM), Marshall Islands (MH), and Palau (PW) — which operate independent tax systems.

How are cryptoassets taxed?

Guam has no separate cryptoasset tax law. The mirror-IRC framework applies — federal IRS guidance on cryptoasset taxation (including IRS Notice 2014-21 and Revenue Ruling 2023-14) applies to Guam residents via the mirror code. Gains are treated as property sales, and DRT receives the relevant returns.

Common pitfalls when operating in Guam

Several recurring traps affect businesses and individuals engaging with Guam's tax system:

When should you talk to a Guam tax professional?

Some filings are straightforward — a single Guam employer, Guam-only income, no business activity. Others get complicated quickly:

• Your income comes from both Guam and the US mainland — requiring filings with both DRT and the IRS
• You are US military stationed in Guam and hold a home-state domicile
• You own or operate a business subject to the monthly BPT return
• You are starting a business and need to assess BPT vs income tax interaction
• You received a DRT notice of assessment, audit letter, or back-tax correspondence
• You are applying for a GEDA economic development incentive or tax abatement
• You have cryptoasset transactions and need source-income analysis under the mirror-code framework

You can find vetted Guam practitioners through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the DRT website or with a licensed Guam practitioner before filing.