Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 6 - RETURNS AND PAYMENTS; ADMINISTRATION › Section 18-235-97 - Estimates; tax payments; returns

Current through June, 2024
(a) Definitions.
				For purposes of this section:
"Tax" shall be defined as set forth in section
				  235-97,
				  HRS.
"Taxpayer" means individuals, corporations (including
				  corporations organized under subchapter S of the Internal Revenue Code of
				  1986), estates, and trusts, except where the taxpayer clearly refers to only
				  one of the preceding.
(b)
				Filing of estimated tax.
(1) In general. In
				general, every taxpayer (including S corporations), subject to taxation under
				chapter
				235, HRS, shall submit estimated tax
				payments on a quarterly basis to the department. The estimated tax payments
				shall be accompanied by forms prescribed by the department. As provided in
				section
				235-97(a)(2),
				HRS, where tax is withheld from wages or collected at the source, the amount of
				tax withheld or collected at the source shall be deducted from the total
				estimated tax liability of the taxpayer for the taxable year.
(2) Exceptions. Estimated tax payments are
				not required if:
(A) The taxpayer's estimated
				tax liability (after taking into account all taxes withheld or collected at the
				source) for the taxable year is less than $500;
Example:
R, a single individual, is employed as
				  a carpenter. In 1993, R expects to earn $30,000 from which $2,300 in taxes will
				  be withheld. During 1993, R also expects to earn $2,500 for carpentry performed
				  for family and friends; no tax will be withheld.
Based on an estimated gross income of $32,500, less the
				  standard deduction of $1,500 and personal exemption of $1,040, R's estimated
				  taxable income is $29,960. R's estimated tax liability is $2,535.
Since the difference between R's estimated tax liability and
				  the amount of tax withheld from R's salary is less than $500, R is not required
				  to submit estimated tax for 1993.
(B) The taxpayer did not have any tax
				liability for the preceding taxable year; or
(C) Pursuant to section
				235-97(a)(6),
				HRS, the taxpayer is a foreign corporation which, under sections
				235-21 to
				235-39 or other
				provisions of chapter
				235, HRS, attributes less than
				fifteen percent of the foreign corporation's business (entire gross income
				computed without regard to source) for the taxable year to the State.
(3) Exemption for
				foreign corporation. If a foreign corporation is not required to submit
				estimated tax pursuant to section
				235-97,
				HRS, and this section, the corporation shall apply for an exemption. The
				corporation shall submit two copies of a letter requesting an exemption from
				the payment of estimated tax under section
				235-97(a)(6),
				HRS, to the department. Income tax returns from the preceding year, as well as
				other pertinent information, may be submitted along with the letter in support
				of the corporation's claim for exemption. A copy of the letter, stating whether
				the exemption is granted or denied, shall be returned to the taxpayer. If,
				after an exemption is issued, a foreign corporation's business activity (actual
				or expected) in the State increases, and the foreign corporation no longer
				qualifies for the exemption from section
				235-97,
				HRS, the exemption from making estimated tax payments is automatically
				terminated. Upon termination, the corporation is required to submit estimated
				tax to the department pursuant to section
				235-97,
				HRS, and this section.