Possession & Freely Associated States

Overview People in this Area

Rare Taxation Law Experience

Our attorneys can advise you with your taxation requirements for United States possessions areas.

Parsons Behle & Latimer specializes in taxation in United States possessions and the now freely associated states formerly comprising the United States Trust Territory of the Pacific Islands. For possessions, there are federal income taxes, possession income taxes, and coordination provisions. For the “mirror image” taxes, which are actually federal levies, we advise clients on the Guam Territorial Income Tax, the Northern Mariana Islands Territorial Income Tax, and the United States Virgin Islands Territorial Income Tax. In other cases, such as the Samoan Income Tax levied by American Samoa and the taxes of the Federated State of Micronesia, Republic of the Marshall Islands, and Republic of Palau (Belau), we advise on United States law and coordinate with local counsel on local law. We advise on special provisions of United States estate, gift and generation-skipping transfer tax laws applicable to individuals acquiring U.S. citizenship from birth or residence in the possessions, applicability of employment taxes (FICA, social security, Medicare, FUTA, unemployment), and special excise taxes. We also advise on tax incentives offered by several of the possessions.