SB314

Hawaii SB314 mandates corporate income reporting from foreign subsidiaries and applies state apportionment formula to tax profits.

Hawaii SB314 addresses tax haven abuse by requiring corporations to report income from all foreign subsidiaries and applying the state's apportionment formula to determine the share of profits subject to tax. This aims to close tax loopholes and increase state revenue by ensuring worldwide combined reporting of corporate income. The bill mandates filing federal Internal Revenue form 5471 with the state's Department of Taxation, aligning with federal reporting requirements. The changes take effect on January 1, 2026.