Digital PFIC Testing

Digital PFIC Testing is a secure and interactive platform, which transforms the traditional manual process of data collection and PFIC testing and reporting. Click Login above if an existing user or the Watch Video link below to learn more.

Secure

Efficient

Consistent

Introduction

Certain US persons may become subject to the passive foreign investment company (PFIC) regime if they own an interest in non-US companies that invests primarily in passive investments. The PFIC regime imposes obligations for US persons to report taxable income and comply with certain reporting requirements.

A foreign corporation is a PFIC, if 75% or more of its gross income considered passive income, which generally includes dividends, interest, royalties, rents, annuities, and capital gains, or 50% or more of the company’s assets are investments that produce or are held for production of passive income. Various special rules apply to perform this calculation.

The evaluation of PFIC status is performed on a quarterly and annual basis.

Benefits

Secure

Facilitate the secure collection and transmission of financial and other data
Encrypted communication and individual logins, passwords and user rights

Efficient

Reduce excessive time spent on obtaining and validating the financial and other data
All processes completed in a secure and dynamic ecosystem via built-in messaging and notification features
Facilitate the transmission of PFIC statements, reports and forms

Consistent

Financial and other data validated and reviewed with sign-off audit trails
Review and confirmation of PFIC assessments by PwC tax experts

Traditional Approach

Digital PFIC Testing

How it works

Step 1:

Data Input

Investment funds and other investors, and/or portfolio companies input financial and other data into the online Digital PFIC Testing platform.

Step 2:

Data Validation and Processing

After the financial and other data is validated, PwC tax experts, via the Digital PFIC Testing platform, review the PFIC assessments and confirm the results.

Step 3:

Reports and Forms Generation

Finally, the PFIC reports and forms are generated and made available to investment funds and other investors, and/or portfolio companies.

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168 Hubin Road, Huangpu District, Shanghai City, 201600

digital.pfic.support@hk.pwc.com