PRESIDENT BUSH SIGNS CONGRESSMAN UNDERWOOD'S

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CONGRESSMAN ROBERT A. UNDERWOOD Delegate from Guam U.S. House of Representatives Washington, D.C.

 

NEWS RELEASE August 25, 2002

GUAM FOREIGN INVESTMENT EQUITY ACT

Congressman Robert A. Underwood today announced that President George W. Bush has signed the Guam Foreign Investment Equity Act into law.

The bill was signed Friday, August 23, at the White House.

The Guam Foreign Investment Equity Act treats Guam the same as States for purposes of treaty-negotiated tax rates on foreign investment in the U.S.

The Organic Act sets the foreign investment tax rate on Guam at 30 percent, while treaty-negotiated rates in the U.S. are much lower.

"When our economy was going good, we had QC's (Qualifying Certificates) and other ways of reducing the tax burden on foreign investment, but that's no longer the case and the higher tax rate has been a major disincentive," the Congressman said. "The Guam Foreign Investment Equity Act levels the playing field for us and it will be a significant factor in revitalizing our economy in the long run."

The new law allows the foreign investment tax rate for Guam to vary, depending on the tax treaties the United States enters into with foreign countries. "For some countries, like the United Kingdom, the rate is zero," the Congressman said. "Since almost all of our development is created by foreign investment, the possibilities for Guam multiply, as we think of the various tax treaties in our region and around the world."

Congressman Underwood added that more than a dozen foreign investment firms have been tracking the legislation in anticipation of its enactment. H.R. 309 was introduced on January 30, 2001; it passed the House on May 1, 2001 and the Senate on August 1, 2002.  President Bush signed it into law on Friday, August 23, 2002.

For additional information, contact: Cathy Gault at 671-477-4272

Washington office: 2418 Rayburn Office Building Washington, D.C. 20515 Tel: 202-225-1188 Fax: 202-226-0341 Email: guamtodc@mail.house.gov 

Guam office: 120 Fr. Duenas Ave., Ste 107 Hagatna, GU 96932 Tel: 671-477-4272 Fax: 671-477-2587

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