MN HF3898

Expands the definition of "domestic corporation" for Minnesota tax purposes to include foreign corporations incorporated in tax havens, those deriving 20 percent or more of gross income from tax haven sources, or those with 20 percent or more of their property, payroll, and sales factors within the United States.

Establishes a specific list of 46 foreign jurisdictions designated as tax havens, including the Cayman Islands, Bahamas, Luxembourg, and others.

Allows a jurisdiction's tax haven designation to be removed if the United States enters into a tax treaty providing for automatic exchange of tax information and the jurisdiction imposes at least a 10 percent tax rate on a tax base equal to at least 90 percent of the Internal Revenue Code standard.

Modifies the unitary business principle to include foreign entities' income and apportionment factors when such income is included in federal taxable income of a domestic corporation, with a legislative declaration that these provisions are not severable from the domestic corporation definition amendments.

Effective for taxable years beginning after December 31, 2015.