HI HB149

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 Hawaii Department of Taxation at the same time as filing with the IRS.

Applies Hawaii's apportionment formula to all foreign subsidiary income to determine the portion of reported profits subject to state tax.

Addresses corporate tax avoidance schemes that shift domestic earnings to offshore subsidiaries in low-tax jurisdictions, estimated to cost the State $38,000,000 annually in lost revenue.

Takes effect on January 1, 2023.