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A 7.25% withholding obligation is generally imposed on the transferee/buyer when a Hawaii real property interest is acquired from a nonresident person. This withholding serves to collect Hawaii income tax that may be owed by the nonresident person. Use this form to report and transmit the amount withheld.
Every employer that has one or more employees in Hawaii must withhold income tax from the wages of both resident and nonresident employees for services performed in Hawaii.
To satisfy both FIRPTA and HARPTA requirements, the combined cash requirement is fifteen percent (15%) of the sales price. withholding certificates from each of the taxing authorities, the entire amount should be withheld and remitted to the proper tax agencies.
The tax rates for estates and trusts range from 1.4% to 8.25%. The tax rates for corporations are 4.4% up to $25,000, 5.4% over $25,000 but not over $100,000, and 6.4% over $100,000 of taxable income.
Forms required to be filed for Hawaii payroll are: Income Withholdings: Form HI VP-1 Hawaii Withholding Payment Voucher is due semiweekly, monthly or quarterly based on the assigned schedule. Form HI HW-14 Hawaii Withholding Tax Return is due to be filed monthly or quarterly based on the assigned schedule.