ANSWERS: 2
  • No, people in US Territories are not taxed whatsoever.
  • Guam, a US Territory, certainly has taxes: Guam Tax Structure The U.S. Congress created the Territorial Government of Guam as a separate taxing jurisdiction by enactment of the Organic Act of Guam in 1950. Section 31 of the Act provides that the income tax laws in force in the United States shall be the income tax laws of Guam, substituting Guam for the United States where necessary and omitting any inapplicable or incompatible provisions. The U.S. Internal Revenue Code with such changes constitutes the Guam Territorial Income Tax Law. There is the usual range of other types of local taxes, such as, liquor, tobacco, gasoline, real property, gross receipts, use, admissions, amusement, recreational facilities, and hotel occupancy. However, there is only one taxing authority in the Territory, the Government of Guam. There are no separate municipal, county, school district or improvement district taxes. Other than admissions, use, and hotel occupancy taxes, there is no general sales tax imposed directly on the consumer. Foreign Sales Corporation (FSCs) which are licensed to do business on Guam may qualify for certain exemptions or rebates of income, real property, gross receipts and use taxes. Information concerning this can be obtained from the Director of Revenue and Taxation. Source: https://www.guamtax.com/info/structure.html

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