MLchartDataset catalogue

Passive foreign investment company (PFIC)

Term · Insurance and risk management · MLC-T-INS-002508

A foreign corporation that meets specific income or asset tests, primarily designed to prevent U.S. taxpayers from deferring or avoiding U.S. taxes on passive investment income earned through offshore entities. A company is a PFIC if 75% or more of its gross income is passive income, or 50% or more of its assets produce passive income. U.S. shareholders of PFICs are subject to complex and often unfavorable tax rules.

Table 1. Record
IdentifierMLC-T-INS-002508
FieldInsurance and risk management
AbbreviationPFIC
Record as JSON 
{
  "id": "MLC-T-INS-002508",
  "term": "Passive foreign investment company (PFIC)",
  "field": "Insurance and risk management",
  "definition": "A foreign corporation that meets specific income or asset tests, primarily designed to prevent U.S. taxpayers from deferring or avoiding U.S. taxes on passive investment income earned through offshore entities. A company is a PFIC if 75% or more of its gross income is passive income, or 50% or more of its assets produce passive income. U.S. shareholders of PFICs are subject to complex and often unfavorable tax rules.",
  "abbreviation": "PFIC",
  "url": "https://mlchart.com/terminology/insurance/passive-foreign-investment-company-pfic/"
}

Record 2,534 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.