Passive Foreign Investment Company (PFIC) is a US tax rule which can apply to non-US mutual funds, causing complications for US taxpayers who buy them
US tax rules define a Passive Foreign Investment Company (PFIC). It imposes difficult bookkeeping and reporting requirements on US taxpayers holding PFICs. Many non-US mutual funds are treated by the US as PFICs. US taxpayers, such as US or dual citizens living outside the US, who buy such funds may set themselves up for difficult tax filing situations.
The PFIC category is for questions about US PFIC rules, and about how investment choices affected by those rules
The US Internal Revenue Service publishes Instructions for Form 8621. which include an official explanation of PFICs and of the tax reporting requirements. Form 8621 is the primary form US taxpayers file when reporting on PFICs.
