HI SB1302

Requires corporations subject to Hawaii income tax to report all income from foreign subsidiaries by filing a copy of federal Internal Revenue Form 5471 with the Department of Taxation at the same time it is filed with the Internal Revenue Service.

Applies Hawaii's apportionment formula under section 235-29 to foreign subsidiary income to determine the share of reported profits subject to state tax.

Addresses estimated annual revenue loss of $38,000,000 to Hawaii resulting from corporations shifting domestic earnings to offshore tax havens with minimal or no tax liability.

Takes effect on January 1, 2022.