Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 241 - TAXATION OF BANKS AND OTHER FINANCIAL CORPORATIONS
Section 18-241-3.5-01 - International banking facilities; coordination with apportionment and allocation rules

Universal Citation: HI Admin Rules 18-241-3.5-01

Current through August, 2024

(a) If a taxpayer is apportioning business income as set forth in sections 18-241-4-01 to 18-241-4-05, and the taxpayer is claiming a deduction under section 241-3.5, HRS (with respect to deduction for income connected with an international banking facility), the rules in this section shall apply.

(b) For purposes of this section:

"Applicable expenses" mean the same as in section 241-3.5(3), HRS.

"Eligible gross income" means the same as in section 241-3.5(2), HRS.

"International banking accounts" mean the same as in section 412:5-206, HRS.

(c) The deduction allowed by section 241-3.5, HRS, shall be applied before the allocation and apportionment set forth in section 18-241-4-01.

(d) Receipts that are included in eligible gross income shall be excluded from the numerator and denominator of the receipts factor in section 18-241-4-03.

(e) International banking accounts shall be excluded from the numerator and denominator of the property factor in section 18-241-4-04.

(f) Payroll that is included in applicable expenses shall be excluded from the numerator and denominator of the payroll factor in section 18-241-4-05.

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