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Any person who is in Hawaiʻi for a temporary or transient purpose and whose permanent residence is not Hawaiʻi is considered a Hawaiʻi nonresident. Each year, a nonresident who earns income from Hawaiʻi sources must file a State of Hawaiʻi tax return and will be taxed only on income from Hawaiʻi sources.
Hawaii has not adopted the increased expensing deduction under section 179 (Hawaii limit is $25,000) or the bonus depreciation provisions.
A partnership return shall be filed in the first year the partners formally agree to engage in joint operation, or in the absence of a formal agreement, the first taxable year in which the organization receives income or makes or incurs any expenditures treated as deductions for Hawaii income tax purposes.
An Electing PTE will be liable for Hawaiʻi state income tax on the sum of all Qualified Members distributive shares and guaranteed payments of Hawaiʻi taxable income, multiplied by the highest rate of tax applicable to the individual under section 235-51, HRS. At the time of this publication, the PTE tax rate is 11%.
Residents are individuals who are domiciled in Hawaii even if the individual is outside Hawaii for a temporary or transitory purpose. Individuals not domiciled in Hawaii who spend more than 200 days in the tax year within Hawaii are presumed to be residents.
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Form N-35 is used to report the income, de- ductions, gains, losses, etc., of an S corporation doing business in Hawaii.
A partnership return shall be filed in the first year the partners formally agree to engage in joint operation, or in the absence of a formal agreement, the first taxable year in which the organization receives income or makes or incurs any expenditures treated as deductions for Hawaii income tax purposes.
The GET is a privilege tax imposed on business activity in the State of Hawaii. The tax is imposed on the gross income received by the person en- gaging in the business activity. The GET applies to nearly every form of business activity.

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