Bill > SB2738

This bill, effective for taxable years beginning after December 31, 2027, and fully effective July 1, 2050, aims to combat corporate tax avoidance by requiring corporations to report and pay taxes on the income of their foreign subsidiaries, similar to how the federal government requires reporting via IRS Form 5471. It mandates that all income from these foreign subsidiaries will be treated as business income and subject to the state's apportionment formula, which is a method used to determine the portion of a company's total profits that are attributable to the state and therefore taxable. The revenue generated from this will go into the state's general fund. Additionally, corporations will need to provide a detailed report of all their profits, losses, revenues, inter-company transactions, and taxes paid in other states, with penalties established for any violations of these new reporting and tax requirements.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2738&year=2026