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CL1nF}G·~nt:N OF h~\~;"if'.£CF lit-! hCr Tt,) mE GCNE.RN{jR

Tilis Is to certify tilat Sill 1-.'0.31:;, "jm Act toadd TI tie XUA to .U1C Goveffi7iCI1t Code of ~ topr':Jvide t~ IncentivE's for certain tusinessc:s",1::<3.3 en n~ 7th Gal' of July, 1<;':4.culy and re~1..:1arly~&s5ed.

t\TT£STED:

~~?f'. r. It"J'HREZ

leg Islat ivesecrttai)'

~-~~~~--~~--~~~-~-~~~~~~~bC-~Til1s Ac t ~'Jas rece iv€"d ty U"~ Gcve m~ r tilis A' 0<.;;

of C\" w . 1%4 iJt 3:33 o·CICCk~.M •. ~

Is', Rudolph G. Sablan'

RUDOltil G. $:\BLAN

Actin-g sccr~tary of G~

1:.FfR(\/ED:

1$/ M\)i:Uel F. t Guerrero

VN,un F. L. GLiC\F<Ei=tG

CDvernor Gf vUi!rJ

!\~TED: C~Wju,:£ /':! lIt: Lj'.;]~~ }\- ./ 0 J~ )J.

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~~L;·/:.~;n·!GUI~:'.l[;rSLi;l1Jl£1 %4 (s.r::cJ.;:n) R(::;'J1ZJf S£:ss icr.

Bi11/'(,. 3~5~u~stit~re 8ill by Cc~~ittce

on hJricul tur;: a-:d C{,:~i:.trcc

Int rC(~;,:{;eG by.'. _A. 3. U'Jn tut

:\:; :,::r i0 I:..JJ T1 TLE. XLIX Te· THZ CO'kJU;£H C\'~j[ 0F

Ct;l~; TV f-'~t;VJOE Ti\X IilC£!~TIVES Fu;1 CEJ1TAI:i 8JSl~~tSS£S.

DE. IT G:ii~rill BY 1m.: ff(;f'LE (;F THE if.;{;\ ITL if{ GF Gt.!;.<;l,:

s(;cticn 1. Title XliX is hereby addt:d tc UJeC.cvtJl1:;;ent COGt- of CtiJ1l to

rCJu JS fcllc:~:

"TlTlL XLIX

GUAI!,TAX H~mTl \i£ i\Ci

QiAFTEft 1

DEClliTUrWN OF FCl ICY

Se~tiorl 5CCOC. Object ar.~ ~olicy. (3) TIle Gbjcct ~1d

~ur~oseof tilis Act is to jJrclTctc the eco!1ml1ic dtvelof:;::,€Ot cf

tho; territory of G[;l:i'i by offering incc:ntJ\lcs for tilC lstJb1isr;;:;ent

or ex;::anslonof industries (ji"«:j businesses. To this ti"KJ, it is

r1~reL'Ydeclared to L~ U~ j;ollcy of UK' ::;owm.':;(:!'11 of Gu;:t:1i thJt

tax subsi{;'y benefits b~ i:;{)de available tvt the ~rc'r;(JtiGn of ~il

ir.custrial ~nd business activities ~5 Jrc c!etcr:TIined 11i11 stlr-.ulate

t!1~econor;iic devclopr:.ent of the terr; tori, b:;t tl1~cstat)lls1:::ent

or expJnsicn of tilich re~uire SUci1 ~pvem:::~r;tal,~ssistance.

i\ccordingly, it is her{:by further decli:Jre-j to he in U:e t',ubI ic

interest that the granting c.f certiJin subsidies b0 211oh-ed t\J

ben~fici()ries \juJlifyil1-] t!i~refor in Gccorda.-.cc ~jiti1 the

~rovisions tlereof.

{b) 10 order tv {;~tGblish the incentive {,tfered ~~ereur.cer

(;(1 iJ re21istic oasis, t!i2 lcaisl~turr c..f Gu;:f.i f~.:rU1d· cC'cJl,ri'S

that it c'Jnsidus each crJer grant in:] 0 tax 5UJS;CY t112t :.'zry be

is~ed !.:rK!er the ~rovisjcr-.s of this .~ct c$ beir}~ in tile rEtuf€ Gf

.::;cGntr2.ct b;:;ti';Cti'1 ti,c i~~ven~;.ent vI G:J:;i:: ,}(:d FE' l'.~n~'iir.iJrj.

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S:j;::ll in zccc rd,~r:c:,~:~it11 s tan:Jd ros ~rtj C1.1S5 if iC t i!)ns

esL;;:,lis}-,td '.Jy it d~:tt('dt1e the r.d:iilt..;:;;~crc-:r1tiJ:}(, 'Jf

tile ::.:Cl.lia of in iti al inves t:~;er1t as si-ti11} n;: i'ts\;nt

fixed assets an.:! iiiv;:;,It'Jry for e2ci'l incus try (;f bu:;inC'ss).

i~IT)S!)C!l industry 0r !Jl1sin<.:ss i;nd::r tit is ~uu;~:r:!~;r,:\-i1

Sh3ll r.;aintain Jt .all ti;::es ~ hi:l;::.u:.: invest::.cnt vf ,)t

1"':~c:t $r[\ 0"'''.·"'"U •.• _<..J. ~\.iU.

(3) at lcast $15,C{C for .;gricuHuraj 2(Xj fis~linl

entcr;:;rises, (For tiK- ~~ri.oSt.$ of U,i~ s~lt:..:ar.:.~gra~~tlthe-

[cono~ic Incentive CQ~Jission, shJll in acccrdJnce with

stjndards and classifications cstaoli&'ed ty it detennine

the f:iir.if.JUn1 percent3<je of the a,\Qunt of initi2j investner.t

as s!1Jll represent fixed 3SS€ts Grid inve-ntorj fGf each

indus try or business). Any suet! agricuHurJl dnd ri sh ing

cnterj:;rise under this subparagr.:1ph 511311 1~.Jintuin at an

t i;~cs a Glni~ investr.ent of at least $15,CL'0;

(C) at least $ICO,C;OO in a :Jusincss cnga0ed in the

oc.."1ershipof housing projects (Hi~ s.::.:te beil'tj def ined"

for the purposes of this i\ct as a 1",J,:.ocr of inde{;endent

housekeepin~ units, constructfd in accordance Hitl1 a

gen~ral subdivision Pl&l, ~rovidin~ for indivi6val

ho.-:ieci-:nership of the U:lits by ~ale cr lease to

residents or transients of the terri tory or GU£.i3),

fJctories or industrial p1arlts, f0r the use of others,

l1ut includir.g tire construction or o~;e(Jtjon VI t:1f:

sa:Toe l~l.;n such construct ion or op~ration is cii:}~€;{;d

in by trie O:"Ji1er. (For the j:urroses cf t11is s\JupJra}r<lrh

the oasis for cc.•...:;jJ..iting the inve5t;.,~,'1t :::llJL v(' } j,:;j ted

to Q:;i(junts invested in new C0nstnJsticn <:.:x\tiit' creation

('f 1"""'''''.:1Y'its)'v ..' ' ••... \..1 ••••• '

or cj:erJtor;

ttl:;in~s.:: cng~'Jt"j in Ll"; c~!i1':rship or (;i.rrJticn ')f ,C{

(Ii) i!t lCJst $)CO~CGO in tii~cstabli81r.:ent uf on

~tJnOS(;S or U1is i\Ct .JS :JIi'j e5tabl isli:::fnt for tiiC

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t~rritQriJl ~orts; or

l~ater tr~):ls~crtation 5~rvices bEh~ecn foreign iJOO

indu3try or ~uslness ~roviding regularly scheduled

(G) at least SlCO,C{v in the c5t2bli$hrr~nt of QO

in by the m..11erj

COf1structiOrl or operation of U1eS~~ 1-J1el1 engaged

broaccasting station or nCiiS ~eoja, irlCluding the

business to engage in the c~mer~li~of .a television

(F) at least $~,COO in the establis!1(~.ent of a

constr.;ction is er.gaGc--dby the m\ncr or c~,erator;

P) Jt 1e~t $1(,0,0(0 jt') tiie t:Jt.}:)l is.'1::-:-nL ef 'J

UtO roc:;:s for the occupancy 0 f r2Y ioJ trans ien l g:.:ests)

In uhich there are I~t less tha;1 h:cnty-fivc fumiSt1ed

~u~lic, including t10using and f€edir.~ or ~cying gJests~

A:t JS Jli'j ('stab1 isrr.i:ent for ti1C 2ccc;;r..cC;;ti0i1 of the

including the cCl'1$tn.-ction of the sa::.e kTIen sud-j

f\;ccH~::Jof p<Jyin; g2sts~ in uliicj-, ti1crc arc 110t less

{E} iJt least $~-CO,Gc.0 in t!1;; cstzblish:;-:ent of a

ti1::!i1 l\j furnished L,\:,jrx::s for tile cccupa.1C'j of ;;i)yin;j

trJnsitnt DJests), includin0 the C0r~t~tiun of t~1t

...cc/v~,-·"'-"'i-· .o,er; !: "'i""l~... ~".~,. """-'1 ,"':.7'1:" 1""1 r··."'; ...•. -"rria "..:.·,(/'".:HL; •• 01 t.,1'C l-'..iv.dC, 1.._ t..vl.l~ I-.:U.;,J!.'':J "."J

tusirn:s.s cn']aged in the o~';:1c(shi~of optrat ion of ~

SGFIf It:~nstJ~h ccnstn.:ction is en;3:~';;d in by tile O~;;j0r

r.",· t·,-; c'r ("".:r'- t l1.r·1' :.,", (r'I" r ;:;-.',(:,br- i'-.'r~·'.cir.r·.rl ~(' I" ~.;·t.,.•~ (,;"" y .;.I_~.,,:>4. .J~'_"" I w ;); .•h· ••••.••.. d,;; ....1'_, d •. U •. ,11i. •.•d,-

110t<:1{th~ SJ!?\ebeing dcfir.cd fer Vie pur~oscs (If this

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trJils;JortJtion ,si.:n:j·:e3 tct;~'(::1 'fc,reign 2i1-j

terri tvii31 vi r;'orts.

ScctiC:1 :;(011. Cost or l;;r~j l'lS investr~nL fJC tor. :-0r

the j.,ur~,'.J$eo[ Gf:tc-mir.in:l tht Gi':t.wn of !dnk,(t:1 il1v[-str"~nt

req:;ired under Uw provisiom of Sfcti011 ,;(A)10, t!1;; 2~pr.3ised

V<.11uf.'cf land or{J previcu51y cX~5t1ng bl)ilc1i:1gs (as c/';.·rJis€c

fer t:;x f-lJnJo~es) tc bt Liscd in th~ industry cr busincss !-:':':J

be inc~u~d, but slial1 r1t)t Ci~ce,;d ten {HE} !~cr cent of t!1t

totJl 2r.lQ;,mt of the investnent req:.:ired.

S-ection DG012. £~,;lc~m.:Cntof residents required;

teq..orary permi ts. (a) riot less Via" sev~r.ty-flve (75%)

p~r cent of all perscns er.~loycd in an i~just~J or business

l~iUl respc'Ct to \-;-hich tax subsidy tenef its are gr.:.nted shall

be 1egal res iden ts 0 f GU:3!iI' 1-' rov idE'd, )10~.eV(·r, tl1a t tr.e

[ccnc~ic Ir~entiv~ Ccrwission t~y grant tcn)orJrj ~crG!ts

to the Oti-'1trs.'1ip of such imustrjcs or t'Usincsses until such

ti~~ oS qUJlific~ local residents 'are available, if after

notice and publ ie lieJring,.it Is shc~m u~on satisfJciory ~.ro(;f

to tile £CCJ1:)fi4ic Incentive CCtqaission tilat residents wi th the

nt"'Cessary abil ity to· ~erfom the services rc{{ui red 2t the

prevail iog WO£;-e rates, as are fixed by the Dei art:r.t:l1t of

luoor and i'ersonnel of the goverrtnenl of GUdn, are n::>t

available ~dthin the territory of Guam and the industry or

business i'Jill be greatly handicapped as a result tI1~reof; a.'1d

provided, further, that the Cor.~lissionsha11 revoke or ~dify

the !Jcmit at afI'J time before its €x~iration t.:;;cn a finding

thJt residents posse$Sir.g tile necf.:.5sary aDil j ty f1?IJCbecome

<.1vJil;;ble in the tcrri tory of GU2;'i .::nd t!i2t such inf0r:r2t i;:;(,

hJs L-~cnfurnished to the j:.erSQiI, fi rm, or cor~cration (nQiJgciJ

in tile affected business cr iniJ.;stry Jnd no ;;ction 11'1~'~)eell

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(b) Lo resjd-~nt C;.;}31c;yce of .:in inGListrj ur business

gr2nt~'d a certificate of tiJX subsidy Lmdcr the ;.rovisi.;ns 01

tit:s ;',ct shall D::' !Jia off fiis jcb or have his }!Orkh'tti·; reduced

to 1:::,;;, thai'; 40 tour:. fer tiiC' i.urpcsc of cr::,1t in9 {'r~~J.(:Yi:UH

f (\r :1:J:1-reSident ;..(:rke rs.

(c) The Ocr.;drL::ent of lJbor and rcrscnr:~}, ami it5

aJUiuri2td agents UC hereby enj;{)~ieredto icwestigate an')

ccc;plairn filed ;~:Jr$U;)(jt to this si;cticn and to settle th0

S3::~ by the issUJoce of an a~~ropriJte orc€r aft~r r~tic~

2nd heJri~J. hny willful viol]tlon of t~is section, or of

any order of the s~id DCpJrti;~nt issued hereunder, &'1311

c~use GO industry or business to forfei t th; b~r1efits cxtC::1ded

~nd0r u1e ~rovisicns of this title.

. (d) For the ~urr-cse5 of this Act, 'j:rt:valllr.g I'Dge

riitc-s' sh;;ll nean ihe c:;vcrt:ge i·:age paid in Gua.'J fer an

tlCCu;.:.:tion or ski11, as cettn~ined by the D€'~ani-ent of l\1wr

and h::rSor.:1~1.

Section ~013. Subsic.'Y. (a) Each person, firm or

ccr~crJtion granted a-certi f icate of tJX subsic!'j teneri ts as

hereinJfter provided shall be cntitled for a period of ten

(lG) yc~rs to the following benefits, as dete(~ined in

2ccorC2ncc with the provisions hereof:

(1) A non-taxJbl e subs j dy~1 to seventy-f ive(7~~) rer cent of the lr:corr.t t~xes paid to the governr.~nt

cf G~··:::;during Hie tJx.:t>le yeJrs •. In th;: case or a eorj'o-

ration qualifi;:,j .:mo clectinJ 25 c 's;:'\311 i;usincs.s COnc.-

r~;tic:;f ~;1iGcr ~~;;licaJle 1:,,, to hciVt' its tax:JJle jr1CGt:~{·

taxed dj reetly to its stocxl1clCers, the SC'venty-f iV~ (7:~)

f.I'r ('Nit n"n-t;1x.":Jlc ""1'1:;j{-h, ",11)1 i 2i'·"1\J t-~ ~"'r:1r -'(J ~,f;.", a''''' ..JJ V ~ """.....,_ • ..1 ~ ••.•. ,Jf.-; .•..•.•••.••..•• r-'" •• \ J

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tiiC' in:o:'r.: t':1>: ~;3id by tt1C $t0ckli'~1c!er u}:-cn ti'le inccr:{". Gcri~!c:d

fW:i Hit C()rr~or3iic:1. TIiC' rrovisj~ns of this ~U:)~,2r2Jr2~.ii~·lJll

J~·i.ly ~~ily td ti1 respect to stGckliOlccrs ?-,110 arc ti':..m f ili::

r(:sidents cf the territory of GtJJtfl durirr;} the entire tax;.!blc.

year. in H!c Ccr;1~ut~tion of t~ n~n-tJ)8tJl\.' Sl~USj(Jy in the:

CJS~ of any r~crson, fin1 D( cvq:vr.:.:tion under ihe ~;rcvisj(;r¢

cf tili~ ~ubp2!ragri:iFt1" ti"!o:rc $,12.11 not be conshKon:d ;;s ~i:rt of

ttle base fOf $:Jch SJo:;idy th€ taxes ;laid into the Tre:aS\JI'Y (if

GUJir. 011 r.;.trj in.::or.:e of .sucll p:rs.-:m •• f ir;n or Cr.in:CiJt ion i"hien

is derive-j frc.:;; .sourc::s td th<.'Ut the terri tory of Gu~.

(2) In tlie caS€ of a 5tocktr:;1c·~r of 6 cor~oriJtion

(other t~;n a t~~11 business corporation') gre~ttd J certificate

cf tax s~bsloy, a non-taXJble subsidy in an ~;ount ~~u31 t)

s<:'.'enty-five (7~) (.ier cent or the i:1ccr~ t.3X ~·uid to the

govem:'.ent of GUal on incc;,-.cderived by such stockh~:lder rrc::.

dividends of th~ cor~craticn.

Tile :;rovisions of this 51..!b~~raJraj;hsilall t-::i·~·ly cnly

\;i th res~::ct to stockholders t1f:{i are CGiiJ fide residents of

GU~j curin] the tntire taxJblc year.

5cc lien 5OC14. Tetal allm~Qbl~ benefi ts to Ohr~rs

~nd o~erators of hutelS. In case of b{r~tits to o~oers of

h0H:ls 2('1\1 g..JC5t IKUseS undcr 5(;Cti0I1 Sf.AiW(3)(C) of tl1is

'.ct tI..~ tot:::l atlOunt of such tax subsidies si1aU in no

f'Jcnt Q{: grcGter thJn if We hotel or fJ'Jest r:ou5t L{{;rc

orerated .solely by the v~..;r1er.

li::1itJtic:1 to s~.ecific .:.ctiVitY~.

the case of a:,'J ~ers<;n,. fi'-:;I or cor;orJtion, ert~a9j;1g in !:w(;

th·:.:rl une: industriJl ur t>usines:.> .::ctivity in rllf: territory of

GUJr.i, ~r'i tax su::Jsicy gran ted h~ n:l.lilde r 5<1011 t.."~ j i[jit C'i! t{:

D:11y s-:Jch p2rt or the ir.'\JL.Strlal or b:'Jsines5 z;ct hd ty e:1:~2~d

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234567891011121314151617181920212223242:;2627282930

I~Il II

in by tile perscn, fim or corporation as is specified in UK

ctrtificate or subsidy benefits is~ued by the Governor jil:reunder.

O1i\PTER I 11

PROCEDURE A~;D ADiiHJI STPJ\ Tl ON

Section ~~{~O. Ecor.0~ic Incentive CO~Jission cfGua~.

(a) The Econof.Jic Incentive C01TJ-:lission of Gt.;C"I,. G.S cr~Jted by

Ti tle XLVIII of tl"lt: Goverm.ent Code of GU3!:;(hereinJfter referred

to as the 'Commission'). shall aO!:1inlster trJis Act. The

Cor.~rtission shall be ecpowered to:

(1) Investigate all applications for tax subsidies and

recci:1f"...end to tile Governor the granting of cert if icatcs for the

s~~e to persons, fi~$ or cor~oraticns detc~;.inedby tht C~~ission

to qual i fy fer the same, and to investigate ami determim cor.ipl iance

~jith the provisions of this Act or regulatiot~ hereunder.

(2) Revoke. suspend, or r.~dify, in accordance with the

previsions of Section :J:IJ27 cf this subcT'lJpter. arry tax subsidy

benefi t granted hereunder.

(3) In connection with any hearings or invcstigJtions

required by the provisions of this Act or of aITj rules and

regulations issued hereunder, subpoena witnesses, records. and

-

books and inspect properties and facilities with respect to

~;hicn a certificate of tax subsidy has be~n granted.

(4) Request and obtain from the Director of Finance all

such J~diting services GS it may consider necessary in connection

wi th tt'te performance or exercise of its duties. functions or

authority under this Act.'

(5) Frepare and pror:l1;lgate all such rules •.mGreQ'Jlations

as f,ay be necessary to inple::;(';(Jt the o;eration of the industrial

in:entive progra:;-I. not inconsistent l·;ith tlie provisions or this

:Iet, IJ)ich rules 2nd regulations, 'upon d;:[.rolJal of the Governor,

s;ull !j·Jve the forcl' aild effect of ja" •.

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(6) St;;)ject to tit\: J;c;.;rC'priation of ftAn:i5 by Hi;;

l\:~isl.3turc: for 5:.lcil ;.ufj:c;).:•• the q,;;rOiJrL:;Uon of ~';riC!l is

here.;:; i;.{jthoriZlXi, eq:loy WCil t:erSO:1rr.;l fr.;.j,1 tifr.e to tif:1e as

F.JY t-e re~ui i'.:d to ~jninister aricl enforce th~ rrcvisions ot

this i\Ct cffecIiv~ly.

(b) 11"'"C.,·~,··t:-·Ol ' ..,,1' "-1 -'''11 "}' ~'~··-:1t·,·,..,- :<••.•....JI••• v. .•,d~l! 51.:1.L;::;J.. u,.'u. u •• ..;hl!t,;·..••h.•",,} v;ill

cla:;::;:) sU;J:Jitt€d to it and r:..:;ke rcco{:a,'{'r;dJticn t::: the GGvcrrIcr

as to tl1~ grantin:j of a c()rtificJte of tax xbsidy within sixty

(ee.} c.!jS from the recei~t L-y t~ CG~xJission cf an iofcrr:;Jtion

re-quirc-d fro::; the (}.;plic.3nt under this Act cr the rC~\Jlati(jn$

iSSUL-d here'..rriCcr. In the event cetcminat icn is Ilinc:ered G(

delayed by C2Uses outside the control of the CGr:'i»issicin" th-~

period for S'Jeh d(:t~minat ion st~n IX!&lS;.;crdcd ls\1ril1) the:

period of such hindrJriCf: or delay, not to exceed thi rLY (3:))

days in i3.ITj event unlc$S extc:nd~ t?; t~1e GovcrlYJr of GA-.:;J:I.

Uj::.D/1 the e~irJtion of sl)ch f:eriod for dct~rojr.ation, or

extension trJereoj ty the Governor•. as h::rc inbcf0re pro\' ideo,"

an iip~lication shall b>~dC-tC\N to be disa~;irov<:c.

$~ctiQn 5OC21. A~plications. Ap~licdtiDns for

certificates of tax sUbsidy sholl be filc.'Ci on $1.;d1 fon:,$ ZfXj

ot w:h tlr;e5 as shJll be J;rescriG-t-<i for such ~·urr;{>se[Pj the

COi:d SS ton f r~r~ t ir..e to t ir::.e.

The CC1::i~is$icn shall cO!1duct public liCari!1'js cn all

2~~~1icatjons for certificates of tax suusidy art S;laU l]iv1:

i:ubllc ooUce in local 1"k.."'Wspar:~rs cf Q~l1eral ci rClJlat ion i:1

U!e territury of GJ3j.~ of u11 crA;licati00s.

Secticn :;iJC22. GrantinJ vf certificateS I)f ~,;);;SiOY.

iJ;.:on J findii1'J t.;y the CC;j~iissicn that 3rl 3;':i:li~;imii;;5

(-'<:}n;;!r:::tcd tc its s:::tisf:::cti0n tlJt:

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(1) the ir~$trial cr tL:sir.ess activity C.1g.•1ged

in cr ':'Jcut to be crrja;w in by s:;ch Jj::!Jlk.3nt Hill

r.rcr::-otc t:ie f;u::;l ic intcrc:~t by ecof1~-wic ccvel0i:c.cnt

of tile terrl tory of GU(;.i1;

{2} the csti.1bli~lent or c)'.;,~ion of the oct ivi ty

in Gti';':;: requi res in:entiv€: in tl-;£ fOrtJ or u ..1t grantir:Q

cf U:e tax subsld'j benefits; aid

(3) the arpl icant {jtlicrwisc qual if ies under the

p rcv is iOrG 0 f th is ,\c t" the CCi)":niiS$ ion shall recor.a:nd

to the Gov~rncr of Guam the granting of a ccrtlf iCc1te

of tax sut~idy benefits.

Section ~~G23. Certificate of tax SUbsIdy. h certificate

of tJX S'Jbsidy shall be ts.sucd In the ru;:J:'.eof the gove"....".:ent of

~ar.'l lj' the Governor, UPC;1l his approval of tile reco:w~ndation of

tr~ Commission, ~ ~1~11 s;ecify:

(1) the dJte by ~lich the required financial

invest:~cnt shJl1 have been CQq:.Jcted by the piJrtlcular

person, fj m or corporaticn;

(2) tne date upen bhich the ~r~t irk) of slJbsidy

shall cctr"::.Coce, which date Ir.ay be rctro;;ct ive to the

first d~y of it1'Jest~t by the ~erson, fIro or

ccr~oration in the industry or business gronted the

certificate, but a.'Ch date shall not be before the

effective date of this Act;

(3) thJt tm: gr3nt of su~sidy bC~f its :;hal1 be

for ~o ~~rEgatc of tcn (10) years fro~ the date or

CQI~f.:Ei~er:;wtspecified In the certificate;

{~} .such other conditions as the Qovern."'.ent of

GU~Q shall dce~ applic~le or appropriate, not

inconsistent ~Ith the previsions of thIs Act or

re~lat iCr1$ hcreur.cu.

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In <.:Cdition tu the fon:gDin:] s;;tcifit'2.ticns. t~,e

cuti f ic,;te of tux s:.:bsiCy 91011 incl:.;de a rl2ci t21 tint j t

is cGndi t i~;fjal lit.,on t!le j.t:rfornc1nce and \:'!JsaVai'1Ce of the

ccnjj tiJns under li:lid: it H·J$ ~r3nted by ti~t:r.ers·Jn~ fin,

f''' r·"'r"\r·-;tjr'n ·'itrin rl'" •"rir,ct ;"f tl"''' tiq.-· c"""'ip",i, oJ f - •••• t \,,;'"'" "" •.•••• i. ' ....r~ \. -,.,." V &..\. ,.•~ -,;,,-,, c ••.• ,j 'to

U::·:;n failure of tr.c a;.;;} iC·.Jnt to I'criofT: or ObSHve tile

cct1cHt ions as rcqui red I;y We Cm;r.,i$5ion Hi thir: tf!~ srecif Icd

~friod, or ~iyextension thcr~~f granted for good cause

5i':0;Jn to the CCb!1ission, the certificiJtc $;1.:;11b-~ dce::oed

to bE of nv force aoo effect, zr.d the J~\;;licant sl1all p~

or reftmd, as the case C'0J""'Y be, to the gCrvem7.ent of Gua'"~

the ~iGunt of iJfI\j tax SI..:~Si(iy teneri t5 actually received

on tile bJsis of U~eceitificate granted.

Section SlJ024. TrJnsferJbility of certificate. ~

certificate of t£:X SJ..:bsidy teneri t5 graflted It'iGer tile ~rovi5ion$

of this Act nay be trar.sferred, for the Uti~Xp irt'd port ir:n of

t!lt: tern of the certificate, to another ;crscil, rim, or

corj;craticl1 hho or ~Jlich, s!..Icceeds the beneflci;:,ry in "

cJrrying on or in o~erctin-~, the tax subsidi £.ell business,

u;JC!1e:temirotion 1J.j the Co:7.';Jlsslon that Stich person, tim,

Of cor~oraticn is otherwise qualified to recciw such

bcrttfits" ar.O ;:;rovlded that the industrial or tusiness .

Jctivity \-lith respett to ~.,ich the certificate HiJS granted,

is conti:1)t!d by the said p~r$on, fi rm or cor-.;crat ion. Thercaftt;r,

the trJl1Sfcror or tile certificate shiJll lOse all tt;X ex('r:~tion

.3nC Woisidy ber1efi ts l:i1{,.~rt!,is !1Ct Jnd sh-311 b€ 5;J!Jject to t!1C

o;:cr3tion of the tax lz>!s of the terri tor} of Gt;a--:.

Sccticn :;C25. COI-:j;utaticn 2nd ch::ttr.::in3ticn (:f subsidy.

(.::) Tr.e Djr~ctor of Fin.:;r;ct shall ccqut(: iJ(I'j ()etcmin~ annual1y

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ri:-~'~ro'! is icn.s of tn is title, 2nd he is ii( rfJY cuthur i7Hj

:1;::;11c~rtificuU()(j cf tile C::'::i;"issicn t;) i:.zke ~~y,:,;em of

•. ,..' 4::::'1..-: ·~,"n -.-' C.., ~ 1.:"1 1fj_" -- f· "\ ..- .' - ..•.·~1s~ •..:1 ~\..!,":~>lcl I •• C-.;",!1 c$;. ~v ~ It: pers'Jd, In.., c.r c\Jrrorc~\I;:

en ti tli::u tll rece i'w't tl1~SJ;::e r r;:,:; fund3 :.w::d l.Jble irz t!1;;

5~ccilJl r~nd in tt;e 1rcas;;ry of U:e territ0ry of C:,;.:1.;

!;;;r;:i!l;;fter crcJtcd.

(b) Incar.e t2x ~(1)';~:cntsr.;ade by ~Cr50r1$ qUC31 ifyin3

for certificat~s IJf suusid~' bErldits under t!:t: prCiv:si;,;n5

vi this Act s]lJH be covered intc a sf;ccial ~CCCl1:1t in the

T(~;;~;r'j of Hie terri tel)' of GU&i to be d~sigr.at·:d as

'ECUL;;,;ic Incentive fund'.

(c) 1n the case (If \JilY ~ne fi cia ry !..110, i11 acco rdarn:e

ui t1l t!1C JPi-·lic\:!ble l<~·:sof the territory of GUOf:!, sji:;l1 t13v{:

~~~licd for ard b{en gr2ntt~ a rcdetc~inalion of tJX liJbility

or iaxe::. p}":Jble, the .;;:~unt of subsic.ij' deter;;Ji~d for SUCii

tend iciary for the t3X2J),1? yrars affectc-d &1311 be acccrdingly

adjusted by tr:~ Director of Fir.2fice and sue:1 t('n~ficii:rY 5?iJl1

be rc,:pi rcd to refund the excess or subsiciy reed vcd for tile

SiJid tJ~Jble years,·together ldth interest at the r~t{: of ~-

~,er Clf£!ttXi froi7i the date the ~neficiary receive-(} the- subsidy,

or ut!icn~isc n:aliztd the SUQsid'j Uel1efIt; prcvidc-d, ti1Jt said

subsidy return [iiay be offset Qr credi ted against ~1ny ll1X refund

due to th~ ben~(icj~~j.

5c:ction :.-cC26. lir:!itJtion of clubs c.ed'..lcticns. I-!O

cli'.ifi c:y a bi:n2ficicry fer s:JDsiGY ber.efi t::-. ~.r~vidt:d (!:or under

Hli 5 ;,ct sh:.:ll b~ .Jllo:icd 0 r ::.::!d;- .3f tc:r t hc e,p if2 tion ()f tlClt:

~"~;;:-r fr~~-~lth!; d:~t~~•..cn ~~ilid1tilt; j:1C(Ht::~ t~~>:return ~'f SUd1

~i~'i:t~ftciajJ' LG tt1~g'jv~rrii";~:1tof ~:"!-J~~;f(,·r ::~;l;ht:~x;]ljji: jctJ.r

l~,JScue (detcr.~i:'cd Hithout reg=1rd to ;my l:):tension Gf tic:.:).

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'~cc ti c;:1 :"'~<27. ;~·..:;;c;CJti en•• SL:~J-·(:iSiU:1 or z:;eo if iCJ ti:)(1

{If Ci:rtiricdte. :; cerUfi';Jte of t-:~x sut1sltiy granteD in JC-

·:0r.:;,;rtC~ liith ti1C ~,r(jvjsion$ of tllis ,:\ct n<.:ybt rc"vGkc-d, sus-

p:r;.j:;C or ccdifi0:! by t!ll? COVelT,:)T, li~G(j ~iri tter. find In] and

r(-CC;:'i:~r;d3ti(:n by U~(~Ccr::::ission, zfter d:l':: r-..:;,ticc 2!"'i.i htcring,

tiJ.::t:

(lj tile ttnefici':'r)' :lJ$ faD eo to ~:'Jlnt::i(; ce::'r;l i2f:'C~

~lit!l the re·~uir~L:C'nts of this {'let}> OJ any rCg'.llatior..s hcreuf1der;

(2) t1~e [.ern;ficij)ry has filt?cJ" Gr tl1ere hJS teen filcd

~gi3if1St said beneficiJry a p=tition sc~i<in0 t1f1 2dji.idication or

tlJrJ.~ruptcy as to s.udl bcneflciJry, l-lherein \,:etitkn has been

gr2tited; or

(3) in the CJse of a corpcrati0n, up.rn finding 5ubr.:ittcd

to tile Cornmissicn by the I\tt(;mey Gcneri31 of the h:-rri tory of

GuJO Via! the Cor~oraticn has been dissolved.

Section ~o. Approval by the Governor; cdministrativc

fir..:!lity. 1\11 detcminations, decisions or crccrs of the

Comission relQU{Jg to the qut:ll i f Icatioi1 of \:pp1ic~ts hereundt:r

or tc tile issUance, re\~cation, r~dific~ticn, s~spcnsion or

transfer of ccrtifi~atcs of tax subsidy benefits, shall be

subject to the a~prcval of the Go~erncr, ~r.d nG certificate,

Qr Jny re\~cation, r~~ificJtiun, sU5~cnsiGn ~r trznsftr tp~rcof

shall be dCe%ed VJ1 id ~Jithct;t the 1,;r ittcn a;:,pro'JJl c f the

Govcm3r.

S~ctiG{J :..cCZ9. I~,;;j}€'als. My person, fi r.:; or con,oration

,jJ'Jric'.Itd by an eet icn of the Governor lillCf:r tlY.: r·rovlslcns of

tills t,ct shall t~ er.ti tlc-d to jUGici~l revi(;~ tl1~rcof by fi1iIfd

211 Jt-~c.:;l ~,:ith UK: [)istrict Court of C"'l';r;. idtr.in ;;J dr;/$ after

U:c- final dccisicn by t.~~Governor. U~·cnsuch n::vic;:; .:.11 findin)s,

cccisicr6 or dcternination by tht Govfr~r 2S to ~JCstiCMS ot 12CtS

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~~:,::II JC C\~'2i:~Cit rI:;} in U;t oiX;f:(X:C of ccnclus iV~~shr;',d ioJ

t(; t:;(; CI~:..;rt ur friJud (Jr rl;srei;rescntJt ion.

S~ctiQn ::.{;(~. Tic.£: for J:)~l ic~t iun. ;~1;~}iCJt j·::n

tar t!i{; 9rantin~ of tax subsidy btn~1i t$ lII1j~r the pr0\!isioj~

(zf ti!lS l,ct shall Ji: :~;~Get:at l:;ter t:'i;~(;t;.;c y~~r.5 ~3fter Lt1t

fffective CJY of this hct.

Sccti0i1 :-i)()31. Li:::itatiofis. (J) Tile ~'r(;\:isii}~t-;of

tilis ~.ct S::311 te strictly con.strued to discotJr.:gc and frustrJte

Hie use of il1'iY~.Jbtcifu::;e,. device or sch{:;;;e, !·"t~t:lfr t.y i;~€a:iSof

$J1e •• tr,msr~r, or 2ssign::;entof i)ssets. or int~rests, or othen:i~e,.

cesi~1ed to secure tJX subsidy ber~jits.

(b) tiny f;rovi3icn of this flct, t!l:!t is foun-j to be in

conn iet j.jith G!Y'j F€der31 5tJtute or reQi,Jl:.:tlCr. J1;'i~)iC2blc' to

G~~:1,. is dec12rt.:d r".u11 and va id but the ri;:0aining prov1sions

net aff~cted shall rerr~in in force.

s'::ct ion :0(;32. Short title. Tiiis AGt shal1 be kno.~n

and may be ci ted c!s tile tGuOJ:J Tax Incelitive ActP:'

sectiDn 2_ fnis Act shall take "ffeet July 1, 1%4,. except ti:at all

t:t.:sif:::ssts or i,,dtlstriBS est~bl i::;i;':Gin t!lC' terri tc.ry after f~cver.'::>cr 12, 1962, jJ1ich

cU':erdsC' ~,;ect the re-quirr:::en!s cf U!is tit1~ as tc tyjje of wsinC'$S or industry ana

ini ti;;l i1i1,i:::W~1 imestGEnt shall be cnti tled to th~ tax subsidy benef j ts cn~tcd

riereundcr ~;.:o:, ~;:pHcatiGn t(lcrcfQr ~,;ithcut being required to i.~.akearty n~w iO'JC'st!i.ent

if J11 ottlcr re:iuiru:;i;nts of this i.ct are r:et, such tax subsid'j btnefits for tAJSlnesses

or incbstrits cstatll ishcd ;:.:ricr to tnt' effecti'Je date of this /lct to be 9r~nted only

for a rcricd s!..!!;~quei1t to siJid effective d.Jte.

S':'ctkn 3. This Act is JO urQCI1!:'j :;;e~1Sure.