Passive Foreign Investment Company (PFIC)
Annual Information Statements
To support U.S. persons investing in our Funds, iA Clarington provides tax information in the form of PFIC Annual Information Statements.
Generally, U.S. investors are required to file Form 8621 to report their investment in a PFIC. The PFIC Annual Information Statement enables U.S. investors to make the Qualified Electing Fund (QEF) election when they file Form 8621.
A Passive Foreign Investment Company (PFIC) is defined as a non-U.S. corporation (or a non-U.S. entity treated under U.S. tax principles as a corporation) where 75% or more of its gross income is passive income, or at least 50% of the corporation's assets produce or are held to produce passive income. Canadian mutual funds are generally viewed as PFIC for U.S. tax purposes and are subject to U.S. PFIC rules. "U.S. persons" holding Canadian mutual funds in non-registered, RESP and TFSA accounts and are likely subject to the Passive Foreign Investment Company (PFIC) rules and are required to report income from each PFIC when U.S. income tax returns are filed.
A "U.S. person" is defined as a U.S. citizen, U.S. resident, green card holder, or an individual who meets the Substantial Presence test under the Internal Revenue Code (and does not qualify for the Closer-Connection Exception). U.S. resident corporations, partnerships, estates and trusts may also be defined as "U.S. persons."
The PFIC rules are very complex, and we suggest you seek advice from a U.S. tax advisor on how these rules may apply to your situation.
PFIC Annual Information Statements for the 2023 tax year – Now available
Our PFIC statements on select funds for the 2023 tax year are now available and linked below.