Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 235 - INCOME TAX LAW
Subchapter 4 - CORPORATION INCOME TAX
Section 18-235-71 - Tax on corporations; rates; credit of shareholder of regulated investment company
Current through January, 2025
(a) (Reserved)
(b) Federal Treasury regulations relating to the Internal Revenue Code provisions of regulated investment companies shall apply and the imposition of tax and deductions for dividends paid shall be as provided under section 235-71, HRS.
(c) Undistributed capital gains of a regulated investment company. Section 235-71, HRS, provides that a shareholder of a regulated investment company is allowed a credit equal to the amount of tax imposed on capital gains which are includable in the shareholder's income tax return under section 852(b)(3)(D), IRC, (taxation of regulated investment companies and their shareholders) limited to the amount of tax paid by the regulated investment company at the state capital gain rate to the State. The credit shall be applied against the shareholder's tax liability as determined under chapter 235, HRS. Any excess amount shall be applied or refunded to the shareholder pursuant to section 235-110, HRS.
(d) Real estate investment trust; in general.
The total penalty, however, is limited to one-half the amount of the deficiency dividend deduction.