In line with the Leon Guerrero Tenorio Administration’s unveiling of its Temporary Economic Assistance and Mitigation (TEAM) Guam Plan, the Department of Revenue & Taxation (DRT) has issued its COVID-19 BPT Deferral Program Guidance.
“It was very important to our team that we issue guidance for the program as soon as possible,” said DRT Director Dafne Mansapit-Shimizu. “This type of program is unprecedented and it took countless hours to work through the mechanics of it.”
DRT will be releasing Form BPT-40DP by month’s end. The new form is required to be attached to the BPT returns for qualified taxpayers who wish to participate in the program.
Following are Rev & Tax’s COVID-19 BPT Deferral Program Guidance:
1. Who is eligible for the COVID-19 BPT Deferral Program?
Guam Business Privilege Tax (BPT) return filers, of Form GRT-1, who are in compliance with the tax laws of Guam.
2. Am I required to participate in the deferral program?
No. Participation in the program is voluntary.
3. How does the deferral program work?
The deferral program applies to BPT Returns as follows:
• March 2020 Return (File Due Date: 04/20/20)
• April 2020 Return (File Due Date: 05/20/20)
• May 2020 Return (File Due Date: 06/20/20)
The general deferral requirements are as follows:
• BPT RETURN FILING:
- Returns for March 2020, April 2020, and May 2020, MUST be filed timely.
- Each return filed must include as an attachment, Form BPT-40DP.
- Failure to file any of the BPT returns for the months indicated above by its due date, will disqualify taxpayers
from the deferral program for all periods and interest and penalty will be applied from the original due date of
the return for each period.
• BPT RETURN PAYMENT:
- Sixty-percent (60%) Non-Deferred payment MUST be paid by the original due date with the BPT return in
order to qualify for the deferral. If payment is not made timely, taxpayer will be ineligible for this program
and interest and penalties will apply to the entire tax due for all tax periods.
- Forty-percent (40%) Deferred payment MUST be paid timely by the due dates indicated below. Failure to pay any portion of the tax due by the required due date will disqualify the taxpayer from the deferral program for all periods and interest and penalty will be applied from the original due date of the return for each period.
§ March 2020 Return deferred tax payment: Due by 07/20/20;
§ April 2020 Return deferred tax payment: Due by 08/20/20;
§ May 2020 Return deferred tax payment: Due by 09/20/20.
Note: if any due date falls on a weekend or GovGuam holiday, then the return or payment can be filed or paid on the next business day.
4. What are the business income types which qualify for deferral?
From your Form GRT-1, Part 1:
Line 1 – Wholesaling
Line 2 – Retailing
Line 3 – Service
Line 4 – Rental Real Property
Line 5 – Rental Others
Line 6 – Profession
Line 7 – Commission
Line 8 – Insurance Premium
Line 9 – Contracting (Local)
Line 10 – Contracting (U.S.)
Line 11 – Interest
Line 12 – Amusement
Line 13 – Others
Additionally, business income types reported for USE Tax (Form GRT-1 Lines 15-17), Occupancy Tax (Form GRT-1, Lines 19-20), Liquid Fuel Tax & Automotive Surcharges (Form GRT-2), Tobacco Tax and Alcoholic Beverages (Form GRT-3), and Gaming (Form 3260), are ineligible for deferral.
5. Are there any additional forms that I must attach to my BPT return?
Yes. You must include supplemental Form BPT-40DP. This form will be made available on the DRT website at www.guam.tax.com and at the DRT BPT Branch.