Guam § 60103 - Special Qualifying Certificates.

§ 60103. Special Qualifying Certificates.

(a) To the extent any foreign trade income, carrying charges,

investment income, or gross income derived from sources without Guam

as determined under Subsection (c) of § 6102 of Title 12, Guam Code

Annotated, at anytime now hereafter becomes includable without the

gross income of a FSC for the purposes of the Guam Territorial Income

Tax, a rebate of corporation income tax payable to the government of

Guam in any single taxable year is hereby established and declared for

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FSCs. Upon application by an FSC after it has been issued a Guam FSC

license pursuant to 11 GCA Chapter 78, a special qualifying Certificate

shall be issued for a period expiring December 31, 2026 for the rebate of

all income taxes applicable to corporate earnings on foreign trade

income, carrying charges and investment income as defined in this

Chapter and any gross income from sources without Guam as determined

under Subsection (c) of 12 GCA § 60102, occurring on and subsequent

to the date of the issuance of the Special Qualifying Certificate and prior

to the expiration of the Certificate.

(b) A FSC desiring to apply for a Special Qualifying Certificate

shall make application by filing a certified copy of its Guam FSC license

with the Corporation and furnishing the Corporation with copies of all

documents which were required to be furnished to obtain the Guam FSC

license pursuant of 11 GCA Chapter 78. The corporation, upon

ascertaining that the material furnished by the applicant is in proper

order, shall thereupon promptly forward its recommendation for issuance

of the Special Qualifying Certificate to the Governor of Guam who shall

approve the application.

(c) A true copy of the Special Qualifying Certificate shall be

attached to each corporate tax return of the FSC and the amount of tax

due prior to the rebate shall be deposited with the Government at the

time of filing of each income tax return. Taxes deposited by a FSC shall

not be placed in the General Fund or commingled with other funds, but

shall be deposited by the Director of Revenue and Taxation in special

purpose trust accounts in one or more FDIC insured banks with offices

within the territory of Guam and shall be withdrawn from such accounts

only for the purpose of (i) making rebates as provided herein or (ii)

payment into the General Fund after a final determination, including a

judicial determination if requested by the FSC taxpayer, that taxes are

validly due and payable and that the FSC is not entitled to any rebate.

Upon filing by a FSC of a tax return, the Director of Revenue and

Taxation shall immediately thereafter cause the return to be reviewed,

and, if the rebate appears to be in order shall cause the amount of tax

deposited by the FSC to be returned to the FSC within fifteen (15) days

from the date of deposit. If for any reason the amount to be rebated is

not returned to the FSC within fifteen (15) days from the date of a

deposit, the unreturned amount shall bear interest at the rate determined

under § 6611 of the Guam Territorial Income Tax law from the date of

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deposit until the date of return to the FSC of the money due to it. In the

event of any failure to make the rebate provided for herein within thirty

(30) days from the date of deposit by a FSC of the taxes due prior to

rebate, the government of Guam consents to suit and consents to a decree

of specific performance being entered against it for payments found to be

lawfully due. The fifteen day review by the Director of Revenue and

Taxation of a tax return of a FSC shall not constitute an audit or final

determination by the Director of taxes due, but the rebate provided for

herein shall be made notwithstanding that an audit or final determination

of taxes due has not been completed with the fifteen day period.

Amounts rebated to a FSC as provided herein shall not constitute income

to such FSC and shall not be included within the gross income of a FSC

for tax purposes.

(d) the provisions of 12 GCA Chapter 58 shall not apply to any FSC

which holds a Special Qualifying Certificate except as otherwise

specifically set forth in this Subsection. 12 GCA Sections 58102, 58104,

58106 (except for item 5, thereof), 58107 (except for the first paragraph

thereof), 58109, 58122 and 58123 shall apply to such FSCs. Any FSC

holding a Special Qualifying Certificate issued pursuant to this Chapter

shall also be entitled to obtain an ordinary Qualifying Certificate issued

pursuant to 12 GCA Chapter 58 from the corporation as to any activities

of the FSC which result or are intended to result in the earning by the

FSC of any income other than foreign trade income, carrying charges or

investment income; provided any FSC desiring a regular Qualifying

Certificate shall meet such requirements as are required of any other

applicant for a regular Qualifying Certificate. It is the intent of the

Legislature that no portion of the rebates of income tax made under this

Section shall be subject to income taxation.