U.S. FILINGS DUE JUNE 30, 2015 BY FOREIGN OWNERS OF U.S. BUSINESS AND U.S. OWNERS OF FOREIGN BUSINESS
24th June 2015
The U.S. Bureau of Economic Analysis (BEA), an agency of the U.S. Department of Commerce, has announced updated filing requirements relating to Form BE-10 (Benchmark Survey of U.S. Direct Investment Abroad) and Form BE-13 (Survey of New Foreign Direct Investment in the United States).
Form BE-10
The Benchmark Survey of U.S. Direct Investment Abroad (Form BE-10) is the BEA’s most comprehensive survey of U.S. direct investment abroad and is conducted once every 5 years. The survey provides statistics that helps gauge the performance of the U.S. economy and the role of the United States in the global economy. The statistics on U.S. direct investment abroad and foreign direct investment in the United States are important components of these accounts. The most recent BE-10 survey covers the fiscal year ending in 2014.
Affecting
All U.S. businesses or persons that own, directly and/or indirectly, 10 percent or more of the voting securities of a foreign entity at any time during the U.S. person’s 2014 fiscal year are subject to these reporting requirements and is required to file a Form BE-10.
Unlike the 2009 BEA survey, a response will be required from persons who satisfy certain reporting thresholds or requirements of the BE-10 whether or not they are contacted by BEA. At the time of the 2009 survey, a BE-10 was required only when a U.S. person was contacted by the BEA.
Reporting Deadline
The due date of Form BE-10 to be filed with the BEA, if certain requirements are met, has been automatically extended to June 30, 2015, for “New Filers” with fewer than fifty foreign affiliates. A “New Filer” includes a business or person which has not filed a BEA survey to report its foreign investments in any previous year. If the U.S. person had no foreign affiliates during its 2014 fiscal year, it must file a “BE-10 Claim for Not Filing.
The BE-10 filings were due by May 29, 2015 for reporting persons not classified as a “New Filer” and who were filing to report fewer than 50 foreign affiliates.
Penalties
Failure to complete and submit the mandatory surveys can ultimately result in both criminal and civil penalties and can lead to fines of up to $25,000. Willful violations may result in criminal penalties of up to $10,000 and, for individuals, imprisonment of up to one year, or both.
Form BE-13
Certain U.S. entities must file annual reports of foreign direct investments with the BEA (Form BE-13). The reported information is used to measure the amount of new foreign direct investment in the United States and will also identify new U.S. affiliates that meet reporting criteria for BEA’s related benchmark, annual, and quarterly surveys of foreign direct investment.
Affecting
All U.S. entities that a foreign person acquires ownership or control, directly or indirectly, of 10 percent or more of the voting securities of such a U.S. entity. Such reporting is subject to crossing certain reporting thresholds.
Reporting Deadline
The Form BE-13 must be filed within 45 days of the foreign person acquiring said securities. Subsequent reporting is required on a quarterly, annual and five-year period after the initial BE-13 filing is made.
As with the Form BE-10, a Form BE-13 filing was only required of entities specifically contacted by the BEA. In a November 26, 2014 notice obtained from the BEA website, the BEA stated that certain U.S. entities are required to file a BE-13 survey reporting their annual foreign direct investments, regardless of whether the BEA has contacted such entity. Companies contacted by BEA that do not meet the requirements of the survey must file Form BE-13 Claim for ExemptionPenalties
Failure to complete and submit the mandatory surveys can ultimately result in both criminal and civil penalties and can lead to fines of up to $32,500. Willful violations may result in criminal penalties of up to $10,000 and, for individuals, imprisonment of up to one year, or both.