General, International Businesses, Tax & Assurance Guidance

International Investment Filing Date: BE-10

Posted on March 27, 2020 by

Sue Tuson

Sue Tuson

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Every five years, the U.S. Department of Commerce Bureau of Economic Analysis (BEA) requires that people with certain investments abroad file a survey.  The mandatory survey is based on investments held at the end of the 2019 fiscal year.

Who Must Report

Reporting is required of all U.S. persons that own or control directly or indirectly 10 percent or more of the voting interest in a foreign business at the end of the U.S. person’s 2019 fiscal year.  This includes investments held in corporations, partnerships, branches, and other equivalent interests in unincorporated business enterprises. Residential real estate held by a U.S. person for rental purposes is required to be reported. Residential real estate that is held by a U.S. person exclusively for personal use or is a primary residence that the owner intends to reoccupy is considered real estate held for personal use and is not required to be reported.

When is the Report Due?

Survey Form BE-10 is due May 29, 2020, for certain U.S. filers that are required to file over 50 forms, the deadline is June 30, 2020.  Extensions are available by contacting the BEA and may be granted for a 30, 60, or 90 day period.  Per inquiry with the Chief of Foreign Operations Section of the BEA, there has been no automatic extension of time to file the survey related to COVID-19.

What Must Be Reported?

There are five filing categories of the survey, the category will determine the level of information that must be provided.

  1. BE-10A: All U.S. reporters must file, at a minimum, a partial BE-10A. A full BE-10A must be filed if any one of the following three items of the fully consolidated U.S. domestic business enterprise was greater than $300 million (positive or negative) at the end of, or for, the Reporter’s 2019 fiscal year: (1) total assets, (2) sales or gross operating revenues excluding sales taxes, or (3) net income after provision for U.S. income taxes. For those filers required to file a partial BE-10A, they must additionally submit either a BE10-B, BE10-C, or BE-10-D as applicable.
  2. BE- 10B: Report for a majority-owned foreign affiliate of U.S. parents with assets, sales or net income greater than $80 million (positive or negative).
  3. BE-10C: Report for majority-owned foreign affiliates of U.S. parents with assets, sales, or net income greater than $25 million (positive or negative); for minority-owned foreign affiliates of U.S. parents with assets, sales, or net income greater than $25 million (positive or negative); and for foreign affiliates for which no one of the items: assets, sales, and net income was greater than $25 million (positive or negative) and is a foreign affiliate parent of another foreign affiliate being filed on Form BE-10B or BE-10C.
  4. BE-10D: Report for foreign affiliates for which no one of the items: assets, sales, and net income was greater than $25 million (positive or negative), and is not a foreign affiliate parent of another foreign affiliate being filed on Form BE-10B or BE-10C.
  5. BE-10: Claim for not filing which is used for U.S. persons that were contacted for filing by the BEA in error.

Some of the general information required for all filers:

  • name of a foreign affiliate, country of location, city of location
  • primary industry code
  • S. reporter’s ownership percentage
  • total assets, liabilities, gross sales, and net income
  • amounts receivable from foreign affiliates and amounts payable to foreign affiliates
  • breakdown of sales revenue by Industrial Classification Code and number of employees engaged in the activity by revenue code
  • total value of goods exported to foreign affiliates and the total value of goods shipped to other foreigners
  • total value of imported goods shipped in from foreign affiliates and the total value of goods imported from other foreigners
  • value of imports must be further broken down by the value of goods intended for further processing, assembly or manufacture, goods intended for resale, and capital equipment

Where do you file the survey?

The survey can be filed online, by fax, or mail. See below for details.

Why should you file this survey?

The survey is conducted to gather economic data pursuant to the International Investment and Trade in Services Act. Failure to file the report is subject to civil penalty and willful failure to report can result in fines and imprisonment.  More information regarding this survey can be found online.  For questions, contact Clayton & McKervey.

The above represents our best understanding and interpretation of the material covered as of the date of this post. Things are moving at a rapid pace, and as such, information is subject to change. This information is provided for informational purposes only and is not intended to be a substitute for obtaining accounting, tax, or financial advice from an accountant.

Sue Tuson

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With her advanced technical skills and experience with complex global businesses, Sue is known to be a creative & responsive international tax advisor.

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