Haw. Code R. § 18-241-3.5-01 - International banking facilities; coordination with apportionment and allocation rules

(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.

Notes

Haw. Code R. § 18-241-3.5-01

[Eff 12/15/95] (Auth: HRS §§ 231-3(9), 241-6) (Imp: HRS §§ 241-3.5, 241-6)