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Hawaii Corporate Tax Exemption

 

STEPS TO APPLYING FOR TAX EXEMPTION IN HAWAII

Is a nonprofit corporation in Hawaii eligible for any state tax exemptions?

Nonprofits corporations are eligible for Hawaii corporate income tax exemption, if the IRS has already granted the organization 501c tax exempt status. However, the IRS exemption doesn’t lend itself to any other state taxes like sales tax.

Are there any applicable taxes if I am selling any items through my nonprofit corporation in Hawaii?

Nonprofit corporations do need to collect sales tax when selling things like retail items, admissions to events, and even when renting out facilities for things like community basketball games. Also, you may need to pull a seller’s permit from the Hawaii State Tax Commission if your tax exempt nonprofit sells retail items.

What if my nonprofit corporation in Hawaii holds auctions? Do I collect sales tax on items sold?

If your HI sales tax on whole $100. This is where good record keeping will pay off.

Additional Nonprofit Resources:

501(c)3 Registration

This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.

This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation. 

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