Passive Foreign Investment Company (PFIC)

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)


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


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


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


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