INDIVIDUAL TAXATION

INCOME TAX

Resident individuals are subject to local territorial income tax on their worldwide income. Married couples can file their income tax returns either jointly or separately.

Taxable income is generally computed by deducting from the gross income all ordinary and necessary expenses. Individuals can either itemize deductions or avail of standard deductions. Resident individuals can also deduct personal allowances for themselves and for their dependents.

CAPITAL GAINS TAX

Capital gains incurred for the transfer of property in Guam is taxed as in the US. Capital gains are currently taxed at 15%. The taxable gain is computed by deducting the acquisition costs (adjusted for inflation) and transfer costs from the selling price.

Taxation process of residential aliens is similar to that of the mainland United States.