Every five years, the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) conducts its benchmark survey known as the BE-12. The 2017 fiscal year-end data and statistics gathered on the size and economic significance of foreign direct investment in the United States can then be used by industry, policymakers, and researchers to make informed decisions about wages levels, hiring trends, investing, and productivity.

Who is required to complete the survey?

Unlike other BEA surveys, the BE-12 is required whether or not the respondent is contacted by the BEA. All U.S. entities where a foreign entity or person holds 10 percent or more of the U.S. entity’s voting rights at any time during 2017, regardless if those voting rights are held directly or indirectly, are subject to filing.

Any penalties for failure to file?

All required entities that fail to take part in the survey may be subject to civil or criminal penalties imposed by the BEA.

What kind of information does the survey seek to find?

Information for the BE-12 survey consists of identification of foreign parents, major products or services provided by the U.S. business, sales or gross operating revenues, balance sheet information, income and employment information, along with financial and operating data.

Are there different versions of the survey?

There are four different forms for U.S. entities participating in the Survey.

• The BE-12A pertains to majority-owned (greater than 50% direct or indirect ownership by foreign persons) U.S. affiliates that have total assets, sales or gross operating revenues, or net income in excess of $300 million.
• The BE-12B can apply to either: majority-owned U.S. affiliates with total assets, sales or gross operating revenues, or net income between $60 million and $300 million, OR a minority-owned affiliates (between 10% and 50% direct or indirect ownership by foreign persons) with total assets, sales or gross operating revenues, or net income of more than $60 million.
• U.S. affiliates that have less than $60 million of total assets, sales or gross operating revenues, or net income, would file the BE-12C.
• U.S. business enterprises that were liquidated or dissolved, those that are fully consolidated or merged within another entity that is subject to reporting, or those in which the foreign voting ownership interest is less than 10% can file the BE-12 Claim for Not Filing. Certain private funds may also be exempt from filing. This exemption would cover U.S. private funds that do not own, directly or indirectly, an operating company and no U.S. operating entity can exist among a foreign financier and the U.S. private fund being exempt.

Deadline to file?

The forms have not yet been finalized. Once available, the completed surveys are due to the BEA on or before May 31, 2018 and will be eligible for electronic filing through the BEA website. Reasonable requests for extensions will be granted only if they are made before the May 31^st deadline.

Questions on the BE-12? Reach out to any member of our International Tax Services Practice.