American Century Variable Portfolios, Inc.
VP International Fund
Foreign Taxes Paid Redetermination Notice
As of December 31, 2022
American Century Variable Portfolios, Inc. – VP International Fund1 has received refunds of foreign taxes previously paid by the fund. The fund elected under the IRC Section 853 to pass through foreign taxes paid to their shareholders. US tax regulations require the funds to notify investors and the IRS of any foreign tax redeterminations. The below is being provided as notice to shareholders of these foreign tax redeterminations.
In certain European Union “EU” countries, pursuant to Article 63 of the EU treaty, the EU prohibits “all restrictions on the free movement of capital between Member States and third countries.” Thus, when an EU country imposed a higher tax rate on foreign investment funds than on domestic investment funds, this fund (and other funds) determined it was necessary to file claims for the refunds of the foreign taxes paid to these countries.
Please note litigation continues in these countries and EU member states are continuing to process refunds. Some countries are still in the process of reviewing litigation and have not refunded any tax. Therefore, these amounts may be required to be continuously revised.
The chart below shows the relevant information:
The year in which the refunded tax was originally withheld
The original foreign tax credit reported
The revised foreign tax credit
The cumulative change since original reporting
Current interest received related to the refunds
Cumulative interest received related to the refunds
If any investors claimed a foreign tax credit for the below years, those investors will need to file an amended tax return or otherwise notify IRS of a foreign tax redetermination. Please consult a tax advisor to assess potential tax implications.
Year Ended December 31, 2022:
Year the Foreign Tax was Originally Withheld | Originally Reported Foreign Taxes Per Share | Foreign Taxes Paid Redetermination | Cumulative Change Since Original Reporting | Current Interest Received Related to Refund | Cumulative Interest Received Related to Refund |
2009 | 0.012899 | 0.009904 | (0.002995) | 60,357.04 | 60,357.04 |
2010 | 0.016917 | 0.012899 | (0.004017) | 41,627.98 | 41,627.98 |
2011 | 0.015794 | 0.009687 | (0.006107) | 44,944.81 | 44,944.81 |
2012 | 0.017987 | 0.017646 | (0.000341) | 363.73 | 363.73 |
2013 | 0.021205 | 0.019255 | (0.001950) | 1,067.37 | 1,067.37 |
2014 | 0.021540 | 0.015011 | (0.006529) | 22,752.38 | 22,752.38 |
2015 | 0.017290 | 0.012493 | (0.004797) | 16,076.20 | 16,076.20 |
2016 | 0.017951 | 0.012125 | (0.005826) | 17,109.68 | 17,109.68 |
2017 | 0.016414 | 0.010984 | (0.005430) | 11,027.62 | 11,027.62 |
2018 | 0.018967 | 0.017813 | (0.001154) | -- | -- |
2019 | 0.016694 | 0.015051 | (0.001643) | -- | -- |
On April 26, 2024, this fund was reorganized into a substantially similar series and class of Lincoln Variable Insurance Products Trust. Please see the prospectus supplement dated April 4, 2024, for more information.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
American Century Investments Variable Portfolio Funds (VP Funds) are a series of investment choices available exclusively through variable annuity and variable universal life products. There are no plans to distribute VP Funds in any other way. Performance will vary based on the fees and expenses assessed with investments in variable insurance products. Those charges are disclosed in the separate account prospectus.
The VP Funds are managed by the same management team using the same objectives, approach, and philosophy as the retail fund. The VP portfolios are managed in a manner that under normal circumstances should produce similar performance. However, it is important to note that there are additional fees and charges assessed with investments in variable insurance products, those charges are disclosed in the separate account prospectus. The fees and charges will reduce returns when compared to that of the retail fund. There is no guarantee that the management team will achieve the same or similar performance in the future.