How do you know if a company is a PFIC?

Generally speaking, a PFIC is a non-US business entity which is: (i) treated as a corporation for US tax purposes (including, as a default matter, a UK limited company), and which (ii) meets one of two tests during the taxable year: (A) 75\% or more of the company’s yearly gross income is passive in nature (e.g. …

Who needs to file PFIC?

More In Forms and Instructions A U.S. person that is a direct or indirect shareholder of a passive foreign investment company (PFIC) files Form 8621 if they: Receive certain direct or indirect distributions from a PFIC. Recognize a gain on a direct or indirect disposition of PFIC stock.

Is Vanguard A PFIC?

How to identify a PFIC. A common question we hear is, “how do I identify a PFIC?” A key point to understand is that mutual funds from U.S. companies with international investments—like Vanguard, for example—are generally not considered PFICs.

Is an RESP a PFIC?

PFIC rules apply to various types of accounts including non-registered, TFSA, RESP and RDSP.

Is UK SIPP a PFIC?

Many foreign grantor trusts are not protected by the US-UK Tax Treaty, but the good news is that a SIPP does qualify. In these circumstances, you can avoid having to report on individual Passive Foreign Investment Companies (PFICs) within the SIPP, which can be time-consuming and expensive.

Is a UK investment trust a PFIC?

Any sort of non-US funds such as offshore mutual funds, UK investment trust, offshore hedge funds, etc. are considered as a PFIC.

What triggers PFIC?

Under the income test, a foreign corporation is treated as a PFIC if 75 percent or more of its gross income fits within the definition of ‘passive income’, which generally includes dividends, interest, royalties, rents, and annuities; there are many other special rules for determining what income is included.

Which ETFs are PFIC?

PFIC ETF statements

Ticker	Fidelity ETF	Tax year
FCGI	Fidelity Global Monthly High Income ETF
FCID	Fidelity International High Dividend Index ETF	2019
FCIQ	Fidelity International High Quality Index ETF	2019
FCIL	Fidelity International Low Volatility Index ETF	2019

Does Vanguard report to HMRC?

Vanguard US domiciled ETFs that are UK HMRC reporting funds lists Vanguard’s US domiciled exchange-traded funds (ETFs) that meet UK HMRC reporting fund requirements.

Are Vanguard funds PFIC?

A common question we hear is, “how do I identify a PFIC?” A key point to understand is that mutual funds from U.S. companies with international investments—like Vanguard, for example—are generally not considered PFICs.