MN SF2893

Eliminates preferences for foreign source income and repeals the subtraction for foreign royalties paid to foreign operating corporations under Minnesota corporate franchise tax law.

Expands the definition of "domestic corporations" to include certain foreign corporations incorporated in or doing business in designated tax havens, with 20% or more of income attributable to the tax haven.

Establishes a new "tax haven" designation that the commissioner may apply to foreign jurisdictions meeting criteria including nominal tax rates, lack of information exchange, lack of transparency, or facilitation of tax avoidance; includes 28 specific jurisdictions as automatic tax havens.

Repeals the foreign operating corporation classification and related provisions in Minnesota Statutes, effective for taxable years beginning after December 31, 2009.

Adds income inclusion requirements for foreign operating corporation deemed dividends, intangible property income, and related interest expenses for taxable years before January 1, 2010.