Title 12 — Autonomous Agencies

(a) I Liheslatura recognizes that the Qualifying Certificate program of the Guam Economic Development Authority (the Authority) was conceived as an economic incentive tool to entice investors into Guam. In use for over two decades, it has had substantial positive impact upon the …

This Chapter shall be known as the “Frank D. Perez Economic Revitalization and Enhancement Zone Act.” SOURCE: Added by P.L. 25-169:2 (Oct. 19, 2000).

A “Qualifying Certificate” is a contract valid for a given period of time, executed by I Maga’håga/Maga’låhi upon recommendation of the Authority, between the government of Guam and the Beneficiary, which has qualified for certain tax rebates or tax abatements or for both in retu…

The recipient of a Qualifying Certificate shall be known as a “Beneficiary.” COL 2025-08-27

A Qualifying Certificate shall entitle the Beneficiary to tax rebates or tax abatements or both in return for meeting the conditions and requirements prescribed by the Authority in this Chapter and in the Qualifying Certificate.

A Qualifying Certificate shall only be issued to the following entities: Any trust, partnership, sole proprietorship, Limited Liability Partnership (LLP), Limited Liability Company (LLC), or corporation formed under the laws of Guam, or possessions corporation as defined in § 581…

No Qualifying Certificate shall be issued unless the Authority finds that the proposed activities of the Beneficiary shall promote the general economic development of Guam by: (a) Employment. Creation of employment; plus (b) Replace Imports. Replacement of imports; or (c) Price R…

A Qualifying Certificate may be issued by I Maga’hågan/Maga’låhen Guåhan upon the recommendation of the Authority to any applicant that proposes to engage in an eligible business, or to any applicant stockholder of such corporation holding a Qualifying Certificate, and said corpo…

A Qualifying Certificate, once issued, shall be a contract between the government of Guam and the Beneficiary, and the tax rebates or abatements or both set out in the Certificate may not be curtailed, limited or impaired without the consent of both parties by any subsequent act,…

The Authority shall adopt regulations containing standards, criteria, and measures of investments for the Qualifying Certificate applicant and describing the benefits to be derived by the people of Guam in the issuance of Qualifying Certificates. Such regulations shall include pr…

In making its recommendation to I Maga’håga/Maga’låhi the Authority shall consider and make specific findings on the following: (a) The impact of the Beneficiary’s proposed activities upon established businesses and markets in Guam; (b) The financial risks facing the Beneficiary …

In its recommendation of specific tax benefits, the Authority shall consider the following as possible terms and conditions to such benefits: (a) Percentage of Investment. Limiting the tax benefits to a percentage of the capital investment in Guam to be made by the Beneficiary; (…

A Qualifying Certificate may be suspended, rescinded or revoked by I Maga’hågan/Maga’låhen Guåhan upon the recommendation of the Authority for the following reasons: (a) Fraud. Fraud or misrepresentation of any material fact in the application for such Certificate; COL 2025-08-27…

No recommendation for suspension, rescission or revocation of a Qualifying Certificate shall be made by the Authority except after a hearing thereon pursuant to the provisions of the Administrative Adjudication Law.

The suspension, rescission or revocation of a Qualifying Certificate may be retroactive to the time of the act or omission giving rise to the suspension, rescission or revocation or for any shorter period recommended by the Authority.

A Qualifying Certificate shall not be issued to any applicant who has not first obtained a license to do business in Guam.

No employee or board member of the Authority or their spouses and no corporation or any other legal entity in which any employee, board member or counsel of the Authority, or their spouses has any financial interest is eligible to apply for a Qualifying Certificate. Neither shall…

Every Qualifying Certificate shall include a requirement that the Beneficiary shall submit a plan for a management training program for the approval of the Authority. The plan shall establish a management training program through which the Beneficiary shall have as managers and o…

(a) Minimum Size. A Beneficiary shall at all times employ a total work force of not less than the minimum full-time equivalent number established by the Authority and as set out in the Qualifying Certificate. However, at all times, the work force of a Beneficiary shall meet the f…

No resident employee of a Beneficiary shall be paid at less than the prevailing wage rate nor shall such employee be laid off work nor have his or her workweek reduced to less than forty (40) hours in order to create employment for employees who are not United States citizens or …

For purposes of the employee percentages of § 58117 of this Chapter, a Beneficiary may include among its employees “trainees” as that term is defined by the Authority’s regulations. For good cause shown, the Authority may grant specific and limited exemptions to the percentage em…

Every Qualifying Certificate which covers the operation of a hotel or restaurant shall require its Beneficiary to participate in (a) the Hotel/Restaurant Industry Apprenticeship Training Program administered by the Guam Community College or other subsequent and similar programs a…

A Qualifying Certificate or the benefits thereunder may not be transferred, assigned or conveyed to another person, firm, partnership, or corporation without the written permission of the Authority. For the purpose of this Section, a transfer of benefits shall have occurred at an…

Applications for Qualifying Certificates shall be filed on forms prescribed and furnished by the Authority and shall require such disclosures as the Authority shall deem appropriate.

The Beneficiary of a Qualifying Certificate must furnish monthly written reports to the Authority beginning thirty (30) days after the date of the issuance of the Qualifying Certificate. Said reports must include, but are not limited to, financial, employment and payroll data. Al…

The Authority shall cause to be published, at the applicant’s expense, in a Guam newspaper of general circulation, a brief résumé of an application for a Qualifying Certificate, said publication to be made no later than seven (7) days following submission of an application. The r…

A notice of the public hearing required by § 58124 of this Chapter shall be published at the applicant’s expense in a Guam newspaper of general circulation in a form prescribed by the Authority at least five (5) days but no more than ten (10) days before the scheduled public hear…

All recommendations of the Authority for issuance, modification, renovation and suspension of Qualifying Certificates shall be forwarded to I Maga’hågan/Maga’låhen Guåhan, together with a memorandum of the Authority’s findings in support of its recommendations. Any recommendation…

Subject to the provisions of this Chapter, I Maga’håga/Maga’låhi is authorized to issue a Qualifying Certificate abating the following taxes on the following terms: 2025 NOTE: Reference to the “Governor” replaced with I Maga’håga/Maga’låhi pursuant to 5 GCA § 1510.

All taxes now levied by virtue of Chapter 24, Title 11, Guam Code Annotated, known as the Real Property Tax Law, shall be abated for a period up to ten (10) years from the effective date of the Qualifying Certificate therefor, and as long as said Certificate is in force and effec…

All taxes now levied on income derived from the lease of land, buildings, machinery or equipment by virtue of Article 2, Chapter 26, Title 11, Guam Code Annotated, known as business privilege taxes, shall be abated for a period up to ten (10) years, from the effective date of a Q…

All taxes now levied by virtue of Article 2, Chapter 26, Title 11, Guam Code Annotated, known as business privilege taxes, shall be abated for a period up to ten (10) years from the effective date of a Qualifying Certificate therefor, and as long as said Certificate is in force a…

All taxes levied or paid by virtue of Article 2, Chapter 26, Title 11, Guam Code Annotated, known as business privilege taxes, shall be abated or rebated for a period up to ten (10) years from the effective date of the Qualifying Certificate therefor, for those gross receipts der…

All taxes now levied by virtue of Article 2, Chapter 26, Title 11, Guam Code Annotated, known as business privilege taxes, shall be abated for a period of up to twenty (20) years from the effective date of the Qualifying Certificates therefor, for those gross receipts derived fro…

All taxes levied by virtue of Article 2, Chapter 26, Title 11, Guam Code Annotated, known as business privilege taxes, shall be abated for a period up to twenty (20) years from the effective date of the Qualifying Certificate therefor, for those gross receipts derived from the co…

Subject to the provisions of this Chapter, I Maga’håga/Maga’låhi is authorized to issue a Qualifying Certificate which establishes the following tax rebate: 2025 NOTE: Reference to the “Governor” replaced with I Maga’håga/Maga’låhi pursuant to 5 GCA § 1510.

A rebate of up to seventy-five percent (75%) of all income tax paid to the government of Guam by a Beneficiary on income received from those activities identified in the Qualifying Certificate may be issued for a period not to exceed twenty (20) consecutive years from the effecti…

The percentage of rebate may be made variable by the Authority so as to permit higher or lower percentages in earlier or later years of the period. In determining the periods up to twenty (20) years and the percentages up to seventy-five (75%) the Authority shall take into consid…

For the purposes of this Section, the term “income tax paid” shall mean income taxes paid on income received on or after the effective date of the applicable Qualifying Certificate. The Director of Revenue and Taxation of the government of Guam shall have authority to determine a…

(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 f…

A rebate of one hundred percent (100%) of all income tax paid to the government of Guam by a Beneficiary on income received from the construction of affordable housing in Guam may be issued for a period not to exceed twenty (20) consecutive years from the effective date of a Qual…

(a) One Hundred Percent Rebate on Certain Trust Income. A rebate of one hundred percent (100%) of all income tax paid to the government of Guam by a Guam-based trust on all its earnings from either inside or outside of Guam, including all income derived from investing funds on Gu…

(a) A rebate of up to one hundred percent (100%) of all income tax paid to the government of Guam by a Beneficiary on income received from the construction of affordable housing in Guam may be issued for a period not to exceed twenty (20) consecutive years from the effective date…

(a) Title. This Section shall be known and may be cited as the “Guam Medicaid Access Enhancement Act.” (b) Definitions. For purposes of this Section: (1) “Healthcare provider” means any individual, partnership, corporation, association, or other entity that is licensed, certified…

It is the intent of I Liheslatura that the abatement or rebate of taxes to Beneficiaries pursuant to §§ 58127, § 58128, § 58129, § 58130 and § 58131 of this Chapter shall be abatements or rebates on the taxes owed on the eligible activities identified in the Qualifying Certificat…

A rebate of up to seventy-five percent (75%) of the income tax paid by the shareholders of a corporation on the dividends of that corporation may be granted for a period not to exceed five (5) consecutive years; provided, however, that the corporation paying the dividends is the …

Limited Liability Partnership and Limited Liability Company. (a) A rebate of up to seventy-five percent (75%) of all income tax paid by the shareholders of a corporation which has elected to be taxed as a “Subchapter S” corporation, as defined at §1361, Title 26, United States Co…

In the event that a Beneficiary proposes to substantially expand or add to its activities and desires to obtain a modification of its original Qualifying Certificate to include its proposed additional activities, then upon findings and recommendations of the Authority, I Maga’håg…

In lieu of the percentage of tax abatements and rebates authorized in this Chapter, the Authority may recommend and I Maga’håga/Maga’låhi may grant fifty percent (50%) of said abatements and rebates for a period of double the term authorized by this Chapter. 2025 NOTE: Reference …

When the Authority forwards its recommendations to I Maga’håga/Maga’låhi on the issuance of a Qualifying Certificate, it shall transmit a copy of such recommendations to the Tax Commissioner of Guam for his information. The Tax Commissioner shall forthwith acknowledge in writing …