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    Do the people in Guam or Puerto Rico pay taxes to the U.S. federal government?

    Question #113169. Asked by dj168. (Mar 02 10 10:55 PM)


    star_gazer

    The U.S. Government classifies Puerto Rico as an independent taxation authority by Federal Law 48 U.S.C. ยง 734. Puerto Rico residents are required to pay U.S. federal taxes, import/export taxes,[83] federal commodity taxes,[84] social security taxes etc. The only exemption is federal income taxes since residents pay federal payroll taxes (Social Security[85] and Medicare),[86] as well as Commonwealth of Puerto Rico income taxes. All federal employees,[87] plus those who do business with the federal government,[88] in addition to Puerto Rico-based corporations that intend to send funds to the U.S.,[89] and some others[90] also pay federal income taxes.

    http://en.wikipedia.org/wiki/Puerto_Rico

    Department of Revenue and Taxation

    Though Guam pays federal taxes, it doesn't use the United States tax code. The island has its own tax system, which is based on the U.S. laws. The Guam tax system is managed by the Guam Department of Revenue and Taxation.

    Who Pays?

    Residents of Guam are subject to special U.S. tax rules. Also, unlike residents of the 50 states who must file federal, state and, sometimes, local returns, residents of Guam will file only one return to either Guam (if you have resided on the island for the full year) or the United States.

    http://www.ehow.com/about_5439266_guam-pay-federal-taxes.html

    Mar 02 10, 11:17 PM


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