Passive Foreign Investment Company


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Passive Foreign Investment Company

A company based in a foreign country where either at least 75% of its income comes from passive sources, such as rent or dividend, or at least 50% of its assets carry dividends or interest. PFICs are subject to strict tax guidelines in the United States that intend to discourage investment by Americans. See also: Income test, Asset test.
References in periodicals archive ?
A passive foreign investment company (PFIC) is a foreign corporation of which 75% or more of its income is passive, or 50% or more of the average percentage of its assets produce or are held for the production of passive income.
person must file annually, with its federal income tax return for that year, a separate Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, for each PFIC of which the person is a shareholder during the taxable year.
PFIC shareholders to file annual ownership reports on revised Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, for tax years ending on Dec.
1298(f) was enacted, the only taxpayers who were required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, were U.
anti-deferral regimes, the controlled foreign corporation (CFC) rules and the passive foreign investment company (PFIC) rules, were introduced in Part I.
Adopt the provision in both bills to eliminate the overlap between the passive foreign investment company rules and the controlled foreign corporation rules.
G-REITs subject to the passive foreign investment company (PFIC) regime?
Passive Foreign Investment Company Rules: Controlled foreign corporations should be exempted from the reach of the PFIC provisions.
In addition, the assets in the trust may be considered "owned" by the employer for purposes of the passive foreign investment company (PFIC) and (now repealed) section 956A rules.
The memorandum of understanding also provides that Kudelski would disclose that they do not intend to take any actions to transform OpenTV into a passive foreign investment company and that they would include certain additional disclosures in an amendment to their Schedule TO, including, among other things, detailed information concerning financial analyses that were performed for Kudelski by Credit Suisse concerning the value of OpenTV.
international tax regime, the passive foreign investment company (PFIC) provisions do not coordinate well with the subchapter K partnership rules.
Rossi inquired whether an administrability review would have focused greater attention on the redundant compliance burden from the overlapping passive foreign investment company (PFIC) and CFC regimes.