Compensation includes salary, premiums, living allowances, housing allowances, tax reimbursements, benefits-in-kind, house, car, retirement benefits, and any other compensation-in-kind. There is no concession to a foreign employee.
Individuals with annual compensation of HNL 165,482.05 or less are tax exempt, plus HNL 40,000.00 of medical expenses.
Non-residents are liable only for the applicable withholding taxes (WHTs), depending on the nature of the local income.
Capital gains are taxed at 10%.
The WHT rate on capital gains for non-residents is 4%, which is made by the purchaser. Government offices are required to make a corresponding 10% WHT on capital gains on payments made due to purchase and sale transactions of goods, indemnifications, and purchase of rights and securities.
Individuals are subject to 10% dividend tax.
The following income is tax exempt:
- Income from investment in bonds issued or guaranteed by the government.
- Income from pension funds.