[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 309 Enrolled Bill (ENR)]

        H.R.309

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
          the twenty-third day of January, two thousand and two


                                 An Act


 
To provide for the determination of withholding tax rates under the Guam 
                               income tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Guam Foreign Investment Equity 
Act''.

SEC. 2. AMENDMENT TO THE ORGANIC ACT OF GUAM.

    (a) In General.--Subsection (d) of section 31 of the Organic Act of 
Guam (48 U.S.C. 1421i) is amended by adding at the end the following 
new paragraph:
    ``(3) In applying as the Guam Territorial income tax the income-tax 
laws in force in Guam pursuant to subsection (a) of this section, the 
rate of tax under sections 871, 881, 884, 1441, 1442, 1443, 1445, and 
1446 of the Internal Revenue Code of 1986 on any item of income from 
sources within Guam shall be the same as the rate which would apply 
with respect to such item were Guam treated as part of the United 
States for purposes of the treaty obligations of the United States. The 
preceding sentence shall not apply to determine the rate of tax on any 
item of income received from a Guam payor if, for any taxable year, the 
taxes of the Guam payor were rebated under Guam law. For purposes of 
this subsection, the term `Guam payor' means the person from whom the 
item of income would be deemed to be received for purposes of claiming 
treaty benefits were Guam treated as part of the United States.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts paid after the date of the enactment of the Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.