What is PFIC?
Canadian mutual funds and ETFs are classified as corporations for U.S. tax purposes and as a result ‘U.S. persons’ who hold Canadian mutual funds and ETFs may benefit from PFICP F I C tax reporting. PFICP F I C Annual Information Statements contain information that enables investors to treat a fund or ETF as a Qualified Electing Fund (QEF) on IRS Form 8621. Whether the QEF election is appropriate for you depends on your personal circumstances. The QEF election is the only way that the appreciation in a fund’s value can be eligible for U.S. taxation at the more favourable capital gains rates.