Odaily News Simon Gerovich, CEO of Metaplanet, a Japanese listed company that adopts a Bitcoin reserve strategy, posted on the X platform that for the company's US shareholders, Metaplanet is currently evaluating whether it will be classified as a passive foreign investment company (PFIC) by the US Internal Revenue Service. According to existing IRS guidelines, if 75% or more of the income in a tax year is passive income, or 50% or more of the average assets held in the tax year generate passive income or are held for the purpose of generating passive income, Metaplanet will become a passive foreign investment company for that tax year.
While Metaplanet believes that substantially all of the Company's goodwill can be characterized as an active asset, the IRS may disagree with this determination and will likely designate Metaplanet as a passive foreign investment company for tax year 2025. Metaplanet is currently working with its advisors to provide more clarity to shareholders, including whether information may be provided that would enable shareholders to make a "qualified electing fund" election with respect to their holdings, and expects to provide such additional guidance in the near future.
Note: A passive foreign investment company is a special classification for non-U.S. companies in U.S. tax law. It mainly involves the tax treatment rules for U.S. investors when they hold shares in such companies. Compliance reporting must be ensured based on the shareholding situation.