29 May BEA Filing Requirements for US Companies with Foreign Owners
Bureau of Economic Analysis requires US corporations with 10% or more of foreign owners to file 2 separate forms at different times. It charges penalties ($2500-$25,000) for failure to file.
This year, US companies with 10% or more of foreign owners must file 2 forms: Form BE-605 and Form BE-12.
Quarterly Survey on Form BE-605
This must be filed within 30 days of the end of each fiscal quarter (or 45 days if quarter is also end of fiscal year) by any US company with a 10% owner that is a foreign person.
An exemption is available:
1) if the US entity had for the most recent reporting year total assets, annual sales or gross operating revenues and annual net income of LESS than $60 million EACH (positive or negative), but the company MUST file the BE-605 to claim this exemption initially; or
2) The foreign ownership in the US company is a) held indirectly through another U.S. affiliate ownedby the foreign parent and b) the indirectly held U.S. affiliate has no direct transactions with theforeign parent(s) or foreign affiliates of the foreign parent(s).
Annual Survey on Form BE-15
This must be filed by stated deadline by any US company with a 10% owner that is a foreign person. However, if the company is required to file Form BE-12 for the particular year, it does not need to file Form BE-15 for the year. BE-15 annual survey is collected during the 4 years in between BE-12 benchmark surveys. This year companies are required to file Form BE-12, and thus they are not required to file Form BE-15.
An exemption is available if:
1) the US entity had for the most recent reporting year total assets, annual sales or gross operating revenues and annual net income of LESS than $40 million ALL (positive or negative), but the company MUST file the BE-15 to claim this exemption initially.
No further annual filings of claim for exemption are required unless (1) BEA mails the company BE-15 and (2) the company is exempted from filing.
Even if the company qualifies for exemptions from filing BE-605’s and BE-15’s, it must still make the following filing:
Benchmark Survey on Form BE-12
This must be filed once every 5 years (in lieu of annual BE-15 filing for the applicable year), and even if US company would have been exempt from making BE-15 filing for that year, it still MUST make the BE-12 filing. This year companies must file this form.
Filing deadline for this form is May 31, 2013.
An exemption is available if:
1) the US entity no longer has a 10% foreign owner,
2) it is fully consolidated with another US reporting entity, or
3) it has been liquidated or dissolved during the period in question.
If none of the foregoing exemptions apply, company may file a Form BE-12C
(with reduced information requirements) if the US entity had for the most recent reporting year total assets, annual sales or gross operating revenues and annual net income of LESS than $20 million(positive or negative).
Extension of deadline:
Extension of deadline can be granted, if (1) US company has reasonable request for the extension, and (2) the request for extension is filed before the deadline.
All forms are available on the BEA website at http://www.bea.gov/surveys/fdiusurv.htm.