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Passive Foreign Investment Company (PFIC)

Author

Rachel Ross

Updated on June 10, 2026

Passive Foreign Investment Company (PFIC),

Passive Foreign Investment Company (PFIC) Meanings:

  1. A foreign company whose income is more than 50% of passive investment income or whose assets account for 75% of passive investment income If foreign prisoners are considered PFICs, the tax burden on their owners will increase dramatically.

  2. A simple definition of Passive Foreign Investment Company (PFIC) is: Passive Foreign Investment Company (PFIC) is a company headquartered abroad which has one of two conditions in terms of income or wealth.

    • A foreign company is considered a dormant foreign investment company (PFIC) if it derives 75% or more of its gross income from non-trading operations (profit checking) or if it generates dormant income. To make up at least 50% of its average assets. (Asset check).
    • PFIC is subject to strict and highly complex tax policies for domestic revenue services.
    • US investors should complete IRS Form 8621 with PFIC shares.
  3. Definition of Passive Foreign Investment Company (PFIC): Under current U.S. tax law, more than 70 companies with passive income (investments) or more than 50 of their assets receive passive income. Subject to payment of PFIC tax. Insurers are exempt from PFIC tax if their claim provisions and claim handling fee exceeds 25 assets.

Literal Meanings of Passive Foreign Investment Company (PFIC)

Passive:

Meanings of Passive:
  1. Inactive form of the verb

  2. Accept or allow what happens or whatever others do without active reaction or resistance.

  3. Name or refer to the sound of this verb where the subject is affected by the verb of the verb (as if they were killed instead of being killed)

  4. (Of any circuit or device) which does not have a source of electromotive power.

  5. Due to the thin, unnecessary surface layer of oxide (metal) no longer reacts.

Sentences of Passive
  1. It is thought to have a very high proportion of properties, such as subordinate clauses, adjectives, conscience and passive sound.

  2. Women are portrayed as inactive victims

  3. But the editors gave us a grammatical puzzle when they passively formulated the basic sentence: "It should not be violated."

Synonyms of Passive

compliant, pliable, non-violent, forbearing, obedient, subdued, non-resistant, pliant, docile, patient, complaisant, long-suffering, malleable, resigned, meek, submissive, deferential, lamblike, tractable, supine, unassertive, yielding, acquiescent, unresisting

Foreign:

Meanings of Foreign:
  1. From a country or language other than your own, from, or their feature.

Sentences of Foreign
  1. Foreign language

  2. I think it's very strange to you

Synonyms of Foreign

remote, far off, outlandish, bizarre, far flung, funny, outside, distant, queer, odd, exotic, curious, peculiar, external, weird, overseas, unknown, unheard of, alien, unfamiliar, strange

Investment:

Meanings of Investment:
  1. The act or process of investing money for material gain or results.

  2. Siege of a place by enemy forces to encircle or stop it.

Sentences of Investment
  1. Discussion on private investment in road construction

Synonyms of Investment

speculation, investing

Company:

Meanings of Company:
  1. A trading company

  2. The reality or condition of living with another person, especially in a way that brings friendship and happiness.

  3. Many people gathered, mostly for one purpose.

  4. Central Intelligence Agency.

  5. Form a team to meet him.

Sentences of Company
  1. A transport company

  2. I can use in company

  3. These are the people who have been with us at the moment

Synonyms of Company

circle, presence, institution, operation, organization, concern, group, body, crowd, crew, firm, amity, house, business, enterprise, comradeship, camaraderie, companionship, corporation, fellowship, practice, company, set, band

Passive Foreign Investment Company (PFIC),

Passive Foreign Investment Company (PFIC) means,

  • Corporate income is 50% of Pew's investment income or more than 75% of Pew's investment income. If a prisoner is considered a PFIC, the tax burden on his offer will increase dramatically.

  • Passive Foreign Investment Company (PFIC) definition is: Pive Ign Investment Company (PFIC) is a company headquartered abroad that meets one or two conditions in terms of income or earnings.

    • An IGN company is a reputable Pew Agen Investment Company (PFIC) if 75% or more of its income comes from non-commercial activities.
    • PFIC is subject to the strict and highly complex tax policies of the Internal Revenue Service.
    • U.S. investors holding PFIC shares must complete IRS Form 8621.
  • Under current U.S. tax law, it is defined as a company that generates more than 70% of its revenue (investment) or more than 50% of its revenue. Subject to payment of PFIC tax. Insurers are exempt from PFIC tax if the claim provisioning and claim handling fee is more than 25% of the ETS.

Literal Meanings of Passive Foreign Investment Company (PFIC)

Passive:

Meanings of Passive:
  1. Accepting or allowing what is happening that others are doing without active reaction or resistance.

  2. Indicates the sound of a verb in which the subject is affected by the action of the verb (for example they are killed in opposition to the active form that kills them).

  3. (Of any circuit or device) that does not include an electromotive power source.

  4. Due to the thin, inert surface layer of (metal) oxide no longer reacts.

Sentences of Passive
  1. Passive optical network must be installed in 2000 homes.

Synonyms of Passive

non-aggressive, resistless

Foreign:

Meanings of Foreign:
  1. A feature of a country or language other than your own

  2. Strange and unknown

Synonyms of Foreign

adventitious, new, non-native, novel

Investment:

Meanings of Investment:
  1. The act or process of investing for profit.

  2. Siege or block a place by enemy forces.

Synonyms of Investment

outlay, funding, portion, buying shares, financing, stake, expenditure, interest, share, backing, underwriting, money/capital invested, ante

Company:

Meanings of Company:
  1. Facts or situations with other people, especially in a way that brings friendship and happiness.

  2. Partners with the community.

Sentences of Company
  1. The mayor addressed the meeting.

  2. Sometimes there are thousands of birds whistling ducks.

Synonyms of Company

set-up, friendship, society, closeness, conglomerate, establishment, chain, agency, multiple, consortium, syndicate, undertaking, outfit, office, combine, bureau, association, multinational, venture

Passive Foreign Investment Company (PFIC),

Definition of Passive Foreign Investment Company (PFIC):

  1. The company's revenue is more than 50% of Pive's investment income or 75% of Pive's investment income. If a prisoner is considered a PFIC, the tax burden on his or her offer will increase dramatically.

  2. Meaning of Passive Foreign Investment Company (PFIC): Pive Ign Investment Company (PFIC) is an overseas company that meets one or two of the two conditions in terms of income or earnings.

    • An ign company is a well-known Pive Ign Investment Company (PFIC) if 75% or more of its revenue comes from non-commercial operations (test proceeds) or at least 50% of the average percentage is maintained for pay-earning sales. Is placed (test and)
    • PFIC is subject to the strict and highly complex tax policies of the Internal Revenue Service.
    • U.S. investors holding PFIC shares must complete IRS Form 8621.
  3. A simple definition of Passive Foreign Investment Company (PFIC) is: Under current U.S. tax law, it is defined as a company that generates more than 70% of its revenue from pivots (investments) or earns more than 50% of its revenue from pivots. Subject to PFIC tax payments. Insurers are exempt from PFIC tax if their claims provisions and claims handling fees are more than 25% of the ETS.

Literal Meanings of Passive Foreign Investment Company (PFIC)

Passive:

Meanings of Passive:
  1. Accepting or allowing what is happening or what others are doing without active reaction or resistance.

  2. Indicates the sound of a verb in which the subject undergoes the action of the verb (for example, they are killed in opposition to the verb that kills them).

  3. (Made of metal) which does not react through a thin, inert surface layer of oxide.

Sentences of Passive
  1. Women have been portrayed as inactive victims.

  2. Inactive optical networks should be installed in 2000 homes.

Foreign:

Meanings of Foreign:
  1. In, in, or feature of a country or language other than your own.

Investment:

Meanings of Investment:
  1. Siege a place by enemy forces to encircle or block it.

Company:

Sentences of Company
  1. Sometimes a group of whistling ducks has thousands of birds.