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BE-10 and BE-13 Surveys

June 2, 2015

Author: Paul Reyes, Tax Manager at LGT

The Bureau of Economic Analysis (“BEA”) is an agency in the U.S. Department of Commerce that conducts surveys and collects data in order to produce comprehensive statistics, including the U.S. gross domestic product (GDP).

Two such surveys of which to take note for the 2014 fiscal year are the BE-10 and BE-13. The BE-10 is conducted once every five years to report U.S. investment abroad, and the BE-13 reports “new” foreign investment in the U.S. Failing to report can result in some fairly significant penalties.

BE-10 – Benchmark Survey of U.S. Direct Investment Abroad

The BE-10 is required of any U.S. person (entity or individual) that had a foreign affiliate—that is, that had direct or indirect ownership or control of at least 10 percent of the voting stock of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise—at any time during the U.S. person’s 2014 fiscal year.

Due dates for the 2014 fiscal year:

  • The original due date for a U.S. Reporter filing fewer than 50 forms of BE-10B, BE-10C, and BE-10D was May 29, 2015, but as of May 28, 2015, the BEA has issued a blanket extension to all BE-10 filers, stretching the deadline to June 30, 2015.
  • The original due date is June 30, 2015 for a U.S. Reporter filing 50 or more forms of BE-10B, BE-10C, and BE-10D.
  • An extension of time to file may be granted until:
    • June 30, 2015 if filing fewer than 50 forms (blanket extension granted as of May 28, 2015; extension does not need to be filed)
    • July 31, 2015 if filing 50-100 forms
    • August 31, 2015 if filing more than 100 forms

Be sure you are filling the correct BE-10 form based on the circumstances, as there are several forms meant for different scenarios.

  • The BE-10A is for the U.S. Reporter.
  • The BE-10B, C, and D are for the foreign affiliates. Each foreign affiliate is required to file one of these forms.
  • The BE-10 survey is conducted every five years for U.S. companies with both large and small foreign affiliates.
  • A separate BE-11 survey is conducted annually for U.S. companies with large foreign affiliates—greater than $25 million (positive or negative) of assets, sales, or net income.

Please see the following for more information:
• General filing instructions – http://www.bea.gov/surveys/pdf/be10/BE-10%20Instructions.pdf
• Additional information – http://www.bea.gov/surveys/respondent_be10.htm

BE-13 – Survey of New Foreign Direct Investment in the United States

A U.S. entity is required to file the BE-13 if:

  • A foreign person (entity or individual) creates a new U.S. entity, expands U.S. operations, or acquires a U.S. business enterprise, and
  • The transaction results in 10% or more of the voting interest in a U.S. business enterprise being held by a foreign entity.
    • This is required whether it is a direct foreign investment in the U.S. entity or an indirect investment through a U.S. affiliate.
    • If 10% or more was already owned prior to the transaction, the form is not required. Although, if contacted by the BEA, a Claim for Exemption must be filed. If not contacted by the BEA, no filing is required.
  • A Claim for Exemption may be filed if the transaction cost (actual or expected) is $3 million or less.
  • Data will be collected retroactively back to January 1, 2014.

Due dates:

  • Moving forward, the survey is due 45 days after the transaction occurs.
  • An extension may be requested by calling (202) 606-5613. Extensions should be requested before the due date.

There are different forms (BE-13, BE-13A, BE-13B, BE-13C, BE-13D and BE-13E) required to be filed depending on the circumstances. Please check the applicable form for detailed instructions.

Please see the following for more information:
• General Filing instructions – http://www.bea.gov/surveys/pdf/be13/be13-filing-instructions.pdf
• Additional information – http://bea.gov/surveys/respondent_be13.htm

The BEA conducts these surveys to gather information on inbound and outbound investments for statistical purposes. These are not tax-related surveys nor are they affiliated with the IRS.

Due to the complexity of this topic and the potential penalties involved, LGT recommends consulting your legal attorney for further guidance. The services of a legal or tax advisor should be sought before implementing any ideas contained in this blog. To reach a financial advisor at Lane Gorman Trubitt, PLLC, call 214.871.7500 or email at askus@lgt-cpa.com.

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