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U.S. territories can be divided into two groups: Those that have their own governments and their own tax systems (American Samoa, Guam, The Commonwealth of Puerto Rico, The Commonwealth of the Northern Mariana Islands and the U.S. Virgin Islands), and.
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.
U.S. filers treat the United States as including Guam. Guam filers treat Guam as including the United States. These seemingly simple rules have been the source of considerable controversy, as discussed below. U.S. filers with adjusted gross income of $50,000 or more must include Form 5074.
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy state income taxes, while New Hampshire doesn't tax earned wages. States with no income tax often make up the lost revenue with other taxes or reduced services.
A foreign corporation that engages in limited activities in the United States so that it determines its activities will not give rise to gross income effectively connected with a U.S. trade or business may file a protective return to preserve the right to deductions and credits if it is later determined that the ...
An individual who has income from American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Guam, Puerto Rico or the U.S. Virgin Islands will usually have to file a tax return with the tax department of one of these territories.
Guam also has a Business Privilege Tax, which is 5% of gross sales.
If you are a bona fide resident of Guam for the entire tax year, then you must file a tax return with Guam reporting gross income from worldwide sources. If you are also a U.S. citizen or resident alien, you must file a U.S. Tax Return reporting your worldwide income, with the exception of income from Guam.