Foreign-Sourced Income Exemption (FSIE) regime in Hong Kong plays a crucial role in the city’s tax policy by offering exemptions on certain foreign-sourced income, but navigating its complexities can be challenging for businesses.

In this video, we explore key FAQs released by the Inland Revenue Department, shedding light on important aspects such as:

• Covered Income: Learn how foreign-sourced income used for purchasing overseas property remains taxable 
   when remitted to Hong Kong.
• Economic Substance Requirements: Understand the criteria for contingent gains and how they apply based 
   on the year of assessment.
• Indirect Transfers and Corporate Income Tax: Find out how foreign tax rates influence the 'subject to tax' condition 
   for FSIE eligibility.
• Tax Exemptions Under Participation Regimes: Get insights into how tax exemptions in foreign jurisdictions impact 
   your FSIE claims.

By grasping these key points, you can better optimize your tax position under the FSIE regime.

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