Guam § 60101 - Definitions.

§ 60101. Definitions.

For the purposes of this Chapter:

(a) The term FSC means a Guam domestic corporation which

is:

(1) A FSC as defined in §922(a) of the Internal Revenue

Code as the same may be amended from time to time, and

(2) the holder of a valid Guam FSC license duly issued

pursuant to 11 GCA Chapter 78.

(b) The term foreign trade income means income which is

both:

(1) foreign trade income as defined in §923(b) of the

Internal Revenue Code, as the same may be amended from

time to time, and

(2) gross income of a FSC attributable to non-Guam

trading gross receipts.

(c) the term non-Guam trading gross receipts means the gross

receipts of any FSC which are:

(1) from the sale, exchange, or other disposition of non-

Guam property for direct use, consumption or disposition

outside the territory of Guam, or

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(2) from the lease or rental of non-Guam property for use

by the lessee outside the territory of Guam, or

(3) for services which are related and subsidiary to

(i) any sale, exchange, or other disposition of non-

Guam property by such corporation, or

(ii) any lease or rental of non-Guam property

described in item (2) of this Subsection by such

corporation,

(4) for engineering or architectural services for

construction projects located (or proposed for location) outside

the territory of Guam, or

(5) for the performance of managerial services for an

unrelated FSC in furtherance of the production of non-Guam

trading gross receipts described in items (1), (2), or (3) of this

Subsection, provided that this item (5) shall not apply to a FSC

for any taxable year unless at least fifty percent (50%) of its

gross receipts for such taxable year are derived from activities

described in items (1), (2), or (3) of this Subsection.

(d) The term non-Guam property means property which is

(1) export property as defined in §927(a) of the Internal

Revenue Code as the same may be amended from time to time,

and

(2) held primarily for sale, lease, or rental, in the ordinary

course of trade or business, by, or to, a FSC, for direct use,

consumption, or disposition outside the territory of Guam.

(e) The term Corporation means the Guam Economic

Development Authority.

(f) The term investment income means investment income as

defined §927(c) of the Internal Revenue Code as the same may be

amended from time to time, but only to the extent such income

(1) is derived from investment of foreign trade income or

(2) is effectively connected with the trade or business

conducted by the FSC which produces the foreign trade

income.

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(g) the term carrying charges means carrying charges as

defined in §927(d)(1) of the Internal Revenue Code as the same may

be amended from time to time but only to the extent such charges

(1) are related to or derived in connection with the sale or

lease of non-Guam property as defined in 12 GCA § 60101(d)

or

(2) are effectively connected with the trade or business of

the FSC which produces foreign trade income.