Guam § 58128 - One Hundred Percent Rebate on Certain Insurance Income.

§ 58128. One Hundred Percent Rebate on Certain Insurance Income.

(a) One Hundred Percent Rebate on Certain Insurance Income. A rebate of one hundred percent

(100%) of all income tax paid to the government of Guam by a Beneficiary on all income received from

insurance underwriting either inside or outside of Guam, including all income derived from investing funds

derived from operating an insurance underwriting business on Guam, may be issued for a period not to

exceed twenty (20) consecutive years from the effective date of a Qualifying Certificate therefor; provided,

that as to Guam risks and policy holders the Beneficiary does not issue a policy directly to the policy holder

but only issues the same through a licensed Guam insurance broker. Such insurance Qualifying Certificates

may be renewed for additional periods of twenty (20) years at the conclusion of the first or later periods so

long as the Beneficiary remains in good standing under the laws of Guam and under the rules and

regulations of the Authority.

(b) Rebates on Dividends to Shareholders of Qualified Insurance Underwriters. A rebate of one

hundred percent (100%) of the income tax withheld from the shareholders of an insurance underwriting

business on the dividends from such business may be issued for a period not to exceed twenty (20)

consecutive years from the effective date of the Qualifying Certificate therefor; provided, that:

(1) the insurance underwriting business paying the dividends is the Beneficiary of a Qualifying

Certificate;

(2) the dividends are paid from the insurance or investment earnings of such business as identified

in its Qualifying Certificate, which dividends were received, on a cash basis, during the original or an

extended period of the Qualifying Certificate; and

(3) the dividends were subject to a withholding tax thereon pursuant to those provisions of the

Guam Income Tax Law requiring the withholding as income tax thereon of a fixed percentage of any

dividends paid to non-residents of Guam.

If the shareholder is a resident of Guam then such shareholder may be granted a Qualifying Certificate on

dividends pursuant to § 58130 of this Chapter. Such Qualifying Certificates for non-resident insurance

shareholders may be renewed for additional periods of twenty (20) years at the conclusion of the first or

later periods so long as the Beneficiary remains a shareholder of an insurance underwriting business that is

the holder of its own Qualifying Certificate and is in good standing under the laws of Guam and under the

rules and regulations of the Authority.