Hawaii HB116 mandates reporting of all foreign subsidiary income to prevent tax haven abuse.
Hawaii HB116 aims to close corporate tax loopholes by requiring corporations to report income from all foreign subsidiaries to the state. This change ensures that all income is subject to the state's apportionment formula, making tax liability fairer and more effective. The bill estimates that the state loses $38 million annually due to outdated tax laws, and worldwide combined reporting is considered the best method to address this revenue loss. The new law will take effect on January 1, 2026.
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