FORM 3487 INSTRUCTIONS
Purpose of Form 3487:
What Contracts Qualify for the 1% Exempon:
The 1% BPT increase shall not apply to the income generated from the following;
(1) Contracts entered into or awarded prior to enactment of P.L. 34-87, which were based upon bid awards made
prior to passage of this public law and that cannot be amended or renegoated to accommodate the business
privilege tax increase; and
(2) Contracts entered into or awarded aer enactment of P.L. 34-87, which were based upon bids or proposa
ls
submied prior to enactment of this public law and that cannot be amended or renegoated to accommodate
the business privilege tax increase.
Who Qualifies for the 1% Exempon:
The 1% Exempon is allowed for qualifying taxpayers that are engaged in the following type of acvies;
(1) Upon every person engaging or connuing within Guam in the business of selling any tangible property as
defined under secon 26202(a), Title 11 of the Guam Code Annotated;
(2) Service business as defined under secon 26202(c), Title 11 of the Guam Code Annotated;
(3) Professions as defined under secon 26202(d), Title 11 of the Guam C
ode Annotated;
(4) Contractors as defined under secon 26202(e), Title 11 of the Guam Code Annotated;
(5) Banks, banking instuons, small lenders and building and loan associaons as defined under secon 26202(f),
Title 11 of the Guam Code Annotated;
(6) Persons dealing in foreign currency as defined under secon 26202(g), Title 11 of the Guam Code Annotated;
(7) Other business as defined under secon 26202(h), Title 11 of the Guam Code Annotat
ed;
(8) Insurers as defined under secon 26202(i), Title 11 of the Guam Code Annotated; and
(9) Tour Agencies as defined under secon 26202(j), Title 11 of the Guam Code Annotated.
Part I, Column-by-Column Instrucon:
Column (A). Contract Name. Enter the name of the company or individual that you contracted with.
Column (B). Contract Date. Enter the date the contract became binding to the pares involved (i.e., the date the
contract cannot be amended or renegoated).
Column (C). Total Contract Amount. Enter the total amount you expected to receive or earn from the contract.
Column (D). Beginning Balance. Enter the qualified a
mounts you have not reported on your BPT return.
Column (E). Amount Reported. Enter the amount you are reporng for this month. The total amount reported on
Part I, Column (E) must match the total amount reported on Part II, column (A), Gross Receipts Value.
Column (F). Ending Balance. Enter the remaining qualified amounts you have not reported on your BPT return.
Beginning Balance less Amount Reported = Ending Balance (D-E=F).
Part II, Itemizaon of Contracts claimed for the tax period:
Column (A), (B), and (C). Enter ONLY the Contract Amounts for each Acvity.
Column (E). Compute the 1% Exempon Amount.
Total the Exempon amounts on Line 14, Column E and include on Line 45, Form GRT-1.
Effecve April 1, 2018, the Business Privilege Tax (BPT) rate increased from 4 percent (4%) to 5 percent (5%) with
the passage of Public Law 34-87. This public law also included a sunset provision to end the increase on September
30, 2018 and allow for Exempons to the BPT increase and General Sales Tax for those contracts which were either
negoated or entered into prior to the 1 percent (1%) tax increase. While Public Law 34-113 repealed General Sales
Tax in its enrety, Public Law 34-116 extended the 5% BPT rate effecve October 1, 2018. To claim this 1%
exempon, each taxpayer must complete this form and aach it to their monthly Business Privilege Tax Return.
