Once available, personalized PFIC Annual Information Statements for Fidelity mutual funds can be obtained from fidelity.ca by following the instructions below:
For direct assistance, Fidelity representatives are available to speak to you from 8:00 a.m. to 8:00 p.m., EST, Monday to Friday.
Toll-free: 1 800 263-4077
Telephone: (416) 307-5200
TTY: 1 800 855-0511
Fax: 1 800 387-8092
Visit PFIC ETF statements page for all current and historical statements.
There are tax lawyers and accountants who specialize in this area. An Internet search may help identify suitable tax advisors. As well, any of the top ten accounting firms in Canada should have the expertise to help with PFIC-related questions.
Making a QEF election minimizes the difference in the U.S. tax consequences for individual securities and for mutual funds. Mutual funds and ETFs offer several advantages to investors, including professional money management and high liquidity, and through pooling of money, investors gain exposure to asset classes and stocks that might otherwise be difficult to invest in. In addition, many individual stocks, such as certain REITs and natural resource stocks in the development stage of their life cycle, may also be PFICs for U.S. federal income tax purposes, and the issuers of such stocks might not have the resources to produce PFIC Annual Information Statements.
In addition, tracking the U.S. cost base for numerous separate holdings can increase tax compliance costs.
The industry (including IFIC, The Investment Funds Institute of Canada) is continuing to work with the IRS to determine whether the rules can be relaxed or whether a simpler, more cost-effective method can be used to report the ownership of Canadian mutual funds and ETFs by U.S. persons.
The PFIC reporting rules for investments in Canadian mutual funds and ETFs are complex, with multiple elections available. Fidelity encourages all U.S. persons to contact their financial advisor and a U.S. tax specialist for specific advice about their individual situation and to inform them that Fidelity is making PFIC Annual Information Statements available for all of its mutual funds and ETFs. This will allow investors to make the qualified electing fund (QEF) election on their annual U.S. returns, if applicable.
Below is a filled-in sample Form 8621 with the amounts entered from the Annual Information Statement for both a mutual fund and ETF. This sample is for illustrative purposes only, to show the boxes and lines on Form 8621 that the information is entered into, on the assumption that the QEF election is made. Certain questions that do not involve the information provided with the Annual Information Statement are left blank (for example, question 5 in Part I), even though your client may need to answer them.
The PFIC rules are complex in respect of the various election choices and answers to all of the questions; a U.S. tax specialist should be consulted to ensure these matters consider all of your clients’ circumstances. Fidelity is unable to give advice in this regard.
The 8937 schedule provides you with the amount of return of capital (“ROC”) distributions per unit by series of each fund for U. S. tax purposes in USD. Generally, the amount of ROC distributions reduces the amount of adjusted cost basis per unit which would increase the amount of capital gains when you dispose of your securities of the fund. Only the series of the fund which paid a ROC distribution per unit would report this for the reporting, period.
Investors should speak to their U.S. tax specialist to discuss how to use this information to prepare your income tax return for U.S. tax purposes.
Generally, this 8937 tax information is relevant for all U.S. taxpayers who prepare a U.S. income tax return.
Investors should speak to their U.S. tax specialist to discuss how to use this information to prepare your income tax return for U.S. tax purposes.
The information shown on the 8937 schedule provides you with the amount of return of capital (“ROC”) distributions per unit by series of each fund for U. S. tax purposes in USD which will differ than the amount of ROC distributions reported in the Canadian tax slip in the investor account for Canadian tax purposes. Generally, the amount of ROC distributions reduces the amount of adjusted cost basis per unit which would increase the amount of capital gains when you dispose of your securities of the fund.
Investors should speak to their U.S. tax specialist to discuss how to use this information to prepare your income tax return for U.S. tax purposes.
The 8937 information is available when the related PFIC information is available.
The amount of ROC distributions determined for U.S. tax purposes is tied to the amount of earnings and profits calculations determined for PFIC for U.S. tax purposes. For PFIC purposes, some funds have an April 30 year-end, while other funds have a December 31 year-end. For those funds that have an April 30 year-end for PFIC purposes, the amount of ROC distributions is available for the year-ended April 30. Please refer to more details on the April 30 year-end for PFIC purposes in questions 11 to 13. Funds that have a December 31 year-end for PFIC purposes, the amount of ROC distributions is available for the year-ended December 31.
For example, for the 2025 taxation year, the 8937 U.S. ROC distribution amounts will be posted by April 2026 for the year-ended April 30, 2025. The remaining months for 2025 will be posted by April 2027 for the year-ended April 30, 2026. The 8937 U.S. ROC distribution amounts for a fund for the year-ended December 31, 2025, will be posted by April 2026.
Investors should speak to their U.S. tax specialist to discuss how to use this information to prepare your income tax return for U.S. tax purposes.
This information is for general knowledge only and should not be interpreted as tax advice or recommendations. Every individual’s situation is unique and should be reviewed by his or her own personal legal and tax consultants.