A non-United States company
which primarily derives its income
from investments. A corporation
as a PFIC if it passes one of two tests (with a few exceptions) - the Income Test
(75% or more of the company's gross income
is passive income) or the Asset
Test (50% or more of the company's assets produce
passive income). U.S. investors who invest in PFICs most follow unique tax regulations that differ from regular investments.