Quick Guide to Hong Kong FSIE Regime (Foreign-Source Income) Exemption
Reading Time: 5 minutesAs of 2024, understanding the recent changes to Hong Kong’s Foreign-Source Income Exemption (FSIE) regime is crucial. The FSIE regime, which exempts certain foreign-sourced income from local taxation, has been expanded to include dividends, interest, IP income, and gains from equity disposals. Key updates include the need for substantial economic activities in Hong Kong, a minimum 5% equity holding not less than 12 months for dividend exemptions, and a direct link between IP income and R&D activities conducted locally.
