MN SF3318

Expands the definition of "domestic corporation" in Minnesota tax law to include foreign corporations incorporated in designated tax havens, effective for taxable years beginning after December 31, 2015.

Establishes a list of 46 foreign jurisdictions classified as tax havens including Cayman Islands, Bahamas, Luxembourg, Panama, and others, but allows removal from the list if jurisdiction enters tax treaty with automatic information exchange and imposes at least 10 percent tax rate on 90 percent of the IRC tax base.

Classifies foreign corporations as domestic if they report 20 percent or more of gross income from tax haven sources, or if their average property, payroll, and sales factors within the 50 states and D.C. equal 20 percent or more.

Requires foreign corporations meeting the domestic definition to be included in Minnesota's unitary business apportionment and taxation system with corresponding adjustments to combined reporting rules.

Includes severability clause stating that if the expanded domestic corporation definitions are found unconstitutional, related provisions of the unitary business rules become void for affected taxable years.