U.S. Investor Reporting (PFIC/FATCA)

All Odin nominee entities are considered Passive Foreign Investment Companies (PFICs) under the Foreign Account Tax Compliance Act (FATCA). FATCA requires Foreign Financial Institutions to report information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest, directly to the Internal Revenue Service (IRS).

Odin’s U.S. advisors, Bennett Thrasher, assist us with additional documentation so that there are no tax implications for U.S. investors. As such, Odin can accept funds from U.S. investors without issues. Please note, however, that Odin does not provide tax advice, and if you or your syndicate investors have any concerns we’d recommend speaking to qualified accountants and enquiring independently about PFIC taxation.

U.S. investors are either investors who have provided Odin with a registered address in the U.S. during their account setup, investors who have completed the verification checks with a U.S. passport, or investors who have otherwise informed Odin of their U.S. nationality and/or taxpayer status.

Odin does not handle blue-sky filings. If you require this our advice is to seek a provider. Odin also does not deal with K-1 forms, as they aren’t applicable to PFICs.

Odin’s process for ensuring tax compliance for U.S. investors is as follows:

• Once per year, in the run-up to the end of March, Odin provides PFIC documentation to U.S. investors, so that they may make a Qualified Electing Fund (QEF) special election and report annual earnings under the QEF regime (instead of being subject to the Excess Distribution Regime, which incurs additional taxation). This ensures no additional tax liability on their investments held via Odin vehicles.
• U.S. investors have additional reporting requirements regarding their investment in a PFIC. We advise U.S. investors to file Form 8621.
• Additionally, if the value of your investor’s investments is greater than $50k, (or greater than $100k if they are married and file jointly with their spouse), they will also have to submit Form 8938. You can find more guidance here.
• Those investors required to file Form 8938 must do so annually as part of their personal tax returns. Since the PFIC has no income in Odin's case (no dividends are paid), 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.
• Odin provides the information needed for all of these filings but doesn’t handle the filings for the user. They need to fill out the forms themselves with the data we provide.

Odin does not charge your U.S. investors for any of this.