We can accept funds from US investors without issues. Odin entities are considered PFICs (Passive Foreign Investment Companies) under FATCA (the Foreign Account Tax Compliance Act). We provide additional documentation so that there are (according to our US advisors, Bennett Thrasher) no tax implications.
We don’t handle blue-sky filings, and the form the IRS requires is not form K1, but we have a process.
Once per year, in January, we provide FATCA and PFIC documentation to US investors, so that they may make a Qualified Electing Fund (QEF) special election and report annual earnings under the QEF regime (versus being subject to the Excess Distribution Regime, which incurs additional taxation).
This means no additional tax liability on their investments held via Odin vehicles
US investors have additional reporting requirements regarding their investment in a PFIC - we advise investors to file form 8621 (and Form 8938 if the value of their investments is >$50k, or >$100k if they are married and file jointly with their spouse, guidance here). Those required to file form 8938 need to do so annually as part of their personal tax returns. Since the PFIC has no income in Odin's case (not dividend paying), investors may choose only to file form 8621 once an exit event occurs, in order to make a QEF election on the capital gain. However, we advise investors to take independent tax advice on this matter.
We provide the information needed for all of these filings, but don’t handle the filings for the user. They need to fill out the forms themselves with the data we provide.
We do not charge for any of this.
Please note that we cannot provide tax advice and encourage you to enquire independently about PFIC taxation, and speak to your accountants.