PFIC Annual Information
Summary for Investors
Subject to the disclaimer below, Zealand Pharma A/S (“Zealand Pharma” or the “Company”) has conducted its own assessment of its status under the U.S. Passive Foreign Investment Company (“PFIC”) rules, based on available financial data contained in its Annual Report for the financial year 2025 dated 19 February 2026 and prepared in accordance with IFRS Accounting Standards as adopted by the EU and the additional requirements of the Danish Financial Statements Act (Class D). Based on this assessment, the Company believes that it was not a PFIC for the financial year 2025 and the relevant tax period from 1 January 2025 to 31 December 2025.
This determination is based on the Company’s current understanding of applicable law and the information available to it. No assurance can be given that this conclusion will not be challenged or overturned by tax authorities.
Based on this determination, no PFIC Annual Information statements will be provided for financial year 2025.
DISCLAIMER: The Company does not provide tax advice. The information contained on this website, including any historic PFIC Annual Information Statements available for download, is provided for general informational purposes only and should not be construed as tax advice or a recommendation. Shareholders and other recipients should consult their own independent tax advisers regarding the application of the U.S. PFIC rules to their particular circumstances, including in connection with any shareholdings or other financial interests in Zealand Pharma. All information is provided on a non‑reliance basis and without prejudice.
For the Company’s 2024 financial year and the relevant tax period from 1 January 2024 to 31 December 2024, Zealand Pharma has been classified as a PFIC and PFIC Annual Information Statements can be downloaded in the overview below. These statements are made available by late March 2025 and may be used by U.S. persons to help report their PFIC investments if they make the QEF election.
What is a PFIC?
- A Passive Foreign Investment Company (PFIC) for U.S. tax purposes is a foreign corporation with predominantly passive income or assets. It is defined under U.S. tax law as any foreign corporation where 75% or more of its gross income is passive, or 50% or more of its assets produce (or are held for the production of) passive income. For U.S. tax purposes, passive income includes items such as dividends, interest, rents, royalties, annuities, certain stock gains and certain foreign currency gains that are not directly related to a business.
Consequences of Investment in a PFIC:
- The rules relating to PFICs are complex and Investors should consult their own tax advisors.
- In general, U.S. tax resident investors who do not make any of the elections described below may be taxed at the highest applicable ordinary income rates, and be subject to an interest charge, with respect to above-average distribution amounts from the PFIC as well as regarding gains on disposals of PFIC stock.
- Investors who own an interest in a PFIC are generally expected to file Form 8621, “Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund,” with their annual tax return.
Available Elections for Alternative Tax Rules:
- Qualified Electing Fund (QEF) Election: Allows investors to include their share of the PFIC's ordinary income and capital gains in their taxable income annually and preserves capital gain treatment on the sale of shares.
- Mark-to-Market Election: Permits investors to recognize gains and losses annually based on the market value of PFIC shares, providing another alternative method to manage tax implications of the PFIC. This election is only available for an investment in a PFIC that is a publicly traded corporation.
What is a PFIC Annual Information Statement?
- The PFIC Annual Information Statement provides the necessary information for U.S. investors to report their share of the PFIC's income and distributions on their tax returns for those who elect to treat the PFIC as a QEF.
- The statement contains the investor’s pro-rata share of the PFIC’s ordinary earnings and net capital gain for the tax year (shown as average per day amounts) for entities that might be classified as a PFIC for U.S. tax purposes.
PFIC Annual Statements:
- For further details on Zealand Pharma’s financial year 2024 and the relevant tax period from 1 January 2024 to 31 December 2024, please refer to the PFIC Annual Information statements that may be downloaded below.
