12 Guam Code Ann. § 60101
Terms Used In 12 Guam Code Ann. § 60101
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(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 Guam Code Ann., 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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CH. 60 FOREIGN SALES CORPORATION TAX INCENTIVES
(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 Guam Code Ann. § 60101(d) or
(2) are effectively connected with the trade or business of the FSC which produces foreign trade income.
SOURCE: Added by P.L. 17-63; Subsection (a)(1) amended by P.L. 17-75; Subsection (b)(1) amended by P.L. 17-75; Subsection (d)(1) amended by P.L. 17-
75; Subsection (f) added by P.L. 17-75; Subsection (g) added by P.L. 17-75.