Hawaii HB116 mandates worldwide combined reporting of corporate income to close tax loopholes and prevent tax haven abuse.

Hawaii HB116 addresses corporate tax avoidance by requiring corporations to report income from all foreign subsidiaries. This change aims to close tax loopholes and ensure a fair calculation of corporate tax liability. Corporations must file federal Internal Revenue form 5471 with the department of taxation, aligning with federal requirements. The bill estimates that this change will significantly increase state revenue, countering losses from outdated tax laws. The new provisions will take effect on January 1, 2026.

Hawaii HB116 mandates worldwide combined reporting of corporate income to close tax loopholes and prevent tax haven abuse.

Hawaii HB116 addresses corporate tax avoidance by requiring corporations to report income from all foreign subsidiaries. This change aims to close tax loopholes and ensure a fair calculation of corporate tax liability. Corporations must file federal Internal Revenue form 5471 with the department of taxation, aligning with federal requirements. The bill estimates that this change will significantly increase state revenue, countering losses from outdated tax laws. The new provisions will take effect on January 1, 2026.