The US Internal Revenue Service may classify Metaplanet as a 'passive foreign investment company'

Odaily Planet Daily News: Simon Gerovich, CEO of Japanese listed company Metaplanet, which adopts a Bitcoin reserve strategy, stated in an article on 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 if 50% or more of the average assets held in that 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. Although Metaplanet believes that the vast majority of the company's goodwill can be classified as active assets, the US Internal Revenue Service may not agree with this determination and is likely to classify Metaplanet as a passive foreign investment company in the 2025 tax year. Currently, Metaplanet is in communication with consultants to provide clearer guidance to shareholders, including whether information can be provided to enable shareholders to make "qualified fund selection" decisions regarding their holdings. It is expected that such additional guidance will be provided in the near future. Note: Passive foreign investment companies are a special classification in US tax law for non-US companies, mainly involving tax treatment rules for US investors holding shares in such companies, and compliance reporting needs to be ensured based on the shareholding situation.