Frequently Asked Questions

Passive Foreign Investment Companies (PFICs)

How do I know if I have a PFIC in my portfolio?

None of my PFIC assets are worth more than $25,000/$50,000—am I under the Form 8621 filing threshold?

I am sure that my PFICs, in aggregate value, do not exceed the filing threshold, should I still be concerned with Form 8621?

What is an “excess distribution”?

What is the PFIC tax and interest regime? How can the tax rate end up exceeding 100%?

So I should just open a US brokerage account and invest in US mutual funds?

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Information provided on this website is for guidance purposes only and should not be construed or relied upon as formal tax, legal or financial advice.