ARTICLE · 18 DECEMBER 2018

Is Your Organisation Compliant With US Tax Requirements?

KPMG Luxembourg

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US tax requirements require you to take a number of key actions to better ensure that you are compliant. Have a look at our other checklists on qualified intermediaries and FATCA and CRS obligations.

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Jean Kizito

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US tax requirements require you to take a number of key actions to better ensure that you are compliant. Have a look at our other checklists on qualified intermediaries and FATCA and CRS obligations. Or, read on for help with determining how compliant you are with other key US tax requirements.

1. PFIC reports

Is one of your entities a passive entity with US investors?

Luxembourg entities with US investors may fall under the so-called PFIC Reporting Regime. With regards to the US taxation system, a foreign corporation is treated as a passive foreign investment company (PFIC) if 75% or more of its gross income is passive income (income test), or if at least 50% of the average percentage of its assets produce passive income (asset test).

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