HRS §241-4.3
Alternative tax for financial companies
This section lets certain financial businesses pay a different tax on their capital gains if that tax is lower than the regular tax. The alternative tax adds a 4% rate on capital gains to the regular tax on other income. It only applies to the listed financial companies.
businesses
The statute, as written — Alternative tax
Section 1201 (with respect to alternative tax for corporations) of the Internal Revenue Code shall be operative for the purposes of this chapter and shall be applied as set forth in this section. If for any taxable year a bank, building and loan association, development company, financial corporation, financial services loan company, small business investment company, mortgage loan company, financial holding company, or trust company has a net capital gain, then, in lieu of the tax imposed by section 241-4, there is hereby imposed a tax (if such tax is less than the tax imposed under section 241-4) which shall consist of the sum of: (1) A tax computed on the taxable income reduced by the amount of the net capital gain, at the rates and in the manner as if this section had not been enacted; plus (2) Four per cent of the net capital gain for the taxable year.
Sections this one refers to
§241-4 How the tax is measured and what rate applies
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