For years now my small consultancy business has operated
internationally, including several US states. We declare all our world-
wide income in our home country (UK) and pay the business taxes due
there. No other country or US state has ever asked my company to pay
additional taxes on our earnings.

That is, until Hawaii. We provided a few days consultancy effort
during a visit to Hawaii.

I have been astonished to be told by the Hawaii State Tax Office that
*all* companies, whatever
their country of origin, and whether or nor they have a Hawaii office
or any Hawaii-based employees, must pay 4%% GET on any Hawaii-based
business activity.

This can't be true - if it is, this would make Hawaii unique in the
world, in my experience. Do the people in the tax office know what
they are talking about? Can they really impose a double
tax burden on foreign companies with no base in Hawaii? And how could
they legally enforce this anyway?

On May 19, 4:50 pm, philip_b_tay...@yahoo.co.uk wrote:

On 21 May, 03:25, al Guacamole lava.net> wrote:

On May 22, 10:25 am, "Jerry Okamura" hawaii.rr.com>
wrote:

[...]

On May 22, 6:30 pm, Maren at google jach.hawaii.edu> wrote:

The GET tax people with the state know all the subtle nuances of this
tax-- even better than income tax preparers. Don't look to the tax
form payment document to help you if you seek a lower GET rate or an
exemption. In the case of an Oahu presence, I can verify the above. If
you deliver to a Honolulu customer, then you have a presence in
Honolulu and owe the half point extra in the GET.

On May 22, 6:30 pm, Maren at google jach.hawaii.edu> wrote:

That's true. The difference is subtle. And the tax payment document
doesn't discuss these issues of interpretation. However, the friendly
tax guy in the GET branch of state tax office is probably more
knowledgeable about circumstances of lower GET rate or exemptions than
most income tax preparers.

You might want to move this to another board, such as
misc.taxes.moderated,
but as I understand the law, you provided a service to someone in
Hawaii who
paid you for that service. The fact that you don't have an office in
Hawaii
is irrelevant; you did business in Hawaii. Services are taxable in
Hawaii
(and some other states as well, e.g., Washington). It's possible that
UK
tax authorities will give you a credit against your taxes there for
the tax
you paid in Hawaii.

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