Important Notice: Submit the BE-12 Benchmark Survey Promptly
2024-09-24 10:42:10
Dear Sir/Madam,
This is a reminder that the deadline for submitting the BE-12 Benchmark Survey for Foreign Direct Investment (FDI) in the United States is approaching. As you may know, under the regulations of the U.S. Department of Commerce's Bureau of Economic Analysis (BEA), all U.S. business entities, whether incorporated or not, in which a foreign individual or entity directly or indirectly owns or controls 10% or more of the voting interest or equivalent, are required to file the BE-12 Benchmark Survey every five years. Private equity funds meeting specific criteria may be exempt from filing the BE-12. The survey aims to collect comprehensive data on FDI in the U.S., with a particular focus on the ownership structure, financial transactions, and operations of U.S. business entities held by foreign parent companies.
This year is a BE-12 Benchmark Survey year for FDI reporting. The submission deadline is approaching, and it is recommended that all relevant parties submit their reports no later than May 31, 2023. Additionally, if filing through the BEA's electronic filing system, the deadline can be extended to June 30, 2023. Requests for extensions, if made before the deadline (i.e., by May 31, 2023, or by June 30, 2023, if filing electronically) and deemed reasonable, may be granted.
Depending on the size and ownership structure of the U.S. business entity, there are four different BE-12 forms:
BE-12A: Required if a U.S. business entity is more than 50% owned by a foreign individual or entity and has total assets, sales or gross operating revenues, or net income exceeding $300 million (positive or negative).
BE-12B: Required if (A) a U.S. business entity is more than 50% owned by a foreign individual or entity and has total assets, sales or gross operating revenues, or net income exceeding 300 million (positive or negative), or (B) a U.S. business entity is 50% or less owned by a foreign individual or entity but has total assets, sales or gross operating revenues, or net income exceeding $60 million (positive or negative).
BE-12C: Required if a U.S. business entity is 10% or more owned by a foreign individual or entity and has total assets, sales or gross operating revenues, or net income not exceeding $60 million (positive or negative).
BE-12 Claim for Exemption: Required for U.S. business entities contacted by the BEA that do not meet the requirements for filing BE-12A, BE-12B, or BE-12C.
It is important to note that failure to file the BE-12 with the BEA may result in civil penalties, and willful violations may lead to criminal penalties. If you are required to file, please submit the BE-12 report as soon as possible. Should you have any questions or concerns, please do not hesitate to contact us.
Thank you for your attention to this important matter.