passive foreign investment companies (pfics)
Passive foreign investment companies (PFICs) are foreign corporations primarily engaged in passive income activities such as investments, rents, royalties, and dividends. These companies have specific tax implications for U.S. taxpayers, often requiring them to report their investments and pay higher taxes on the income derived from these entities.
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Related Concepts (1)
Similar Concepts
- controlled foreign corporations (cfcs)
- foreign direct investment
- foreign direct investment (fdi) and taxation
- foreign investment tax shelters
- international investment
- international investments
- investment partnerships
- offshore investments
- pension fund diversification
- pension fund investment strategies
- pension funds
- portfolio investment
- public investment funds
- systemically important financial institutions (sifis)
- tax incentives for foreign investment