Foreign-derived intangible income (FDII) is income that is derived in connection with the sale of goods or services to a foreign person, or income that is attributable to the use of certain intangible property in connection with the sale of goods or services to a foreign person. Regular income is any income that is not considered FDII, such as income from passive activities, interest, dividends, and royalties. The difference lies in the tax treatment of the income, as FDII is subject to a lower tax rate under the GILTI and FDII provisions of the Tax Cuts and Jobs Act.