Passive Foreign Investment Company (“PFIC”) statements

  • A PFIC is a non-U.S. corporation that has at least 75% of its gross income considered passive income or at least 50% of the company’s assets are investments that produce passive income.  Passive income generally includes dividends, interest, rent, royalties and capital gains from the disposition of securities.

    Canadian mutual fund trusts (including exchange-traded funds) and mutual fund corporations are considered PFICs.

  • The annual PFIC Statements contain reporting information that can enable investors classified as “U.S. Persons” to make the Qualified Electing Fund (“QEF”) election for U.S. tax reporting services. This will make it easier for investors affected by the U.S. PFIC rules to make the appropriate elections when complying with U.S. tax filing requirements.

    Under the QEF election, on an annual basis, investors include their pro-rata share of the mutual fund’s earned income for U.S. tax purposes. The QEF election allows investors to defer taxes on unrealized capital gains and to receive more favourable tax treatment on their share of capital gains that were realized within the fund.  An investor’s cost base for  units of the iShares Funds would increase correspondingly based on the income included under the QEF election. BlackRock provides investors with information required to file a QEF election on IRS Form 8621.

  • We are not permitted to provide tax advice. We strongly recommend that investors work with their financial advisor and/or tax professional to discuss the PFIC rules and their potential impact.

  • PFIC statements for each taxation year are expected to be posted to the iShares website on or about March 31st of the following year.

  • PFIC Statements are expected to be available for the iShares Funds in the attached list. The list of iShares Funds for which PFIC Statements will be made available is subject to change without further notice. PFIC statements will only be available for certain iShares Funds, and the list of applicable iShares Funds will be reviewed on an annual basis.

    List of applicable iShares Funds.

  • The PFIC Statements will only be posted on the iShares website.  They will not be mailed to investors.