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Describing a Passive Foreign Investment Company (PFIC)

A passive foreign investment company (PFIC) is a foreign-based corporation which exhibits either one of two conditions. Based on the company's income, at least 75% of the corporation's gross income is "passive.". Income from investments would be passive, but not that from the company's regular business operations.…

Foreign Investment - investopedia.com

Foreign direct investments (FDIs) are the physical investments and purchases made by a company in a foreign country, typically by opening plants and buying buildings, machines, factories and other equipment in the foreign country. These types of investments find a far greater deal of favor,...…