Action Required for U.S. Business Entities with Foreign Ownership
BEA BE-12 Survey Filing Required by May 31, 2023
Like the Olympics which come around every four years, every five years, the U.S. Bureau of Economic Analysis (BEA) requires that all foreign-owned U.S. business entities complete a BE-12 survey. All U.S. entities in which a foreign investor, individual or entity, directly or indirectly owns or controls a 10% or greater voting interest must file the BE-12 survey by May 31, 2023. A consolidated report may be applicable to U.S. affiliate entities that are controlled, at least 50%, by the same parent company. This benchmark survey is mandatory and civil or criminal penalties may be imposed for the failure to file or provide accurate data.
The survey may be mailed, faxed, or e-filed in the BEA eFile System. The due date for e-filers is June 30, 2023. To access the eFile System visit https://apps.bea.gov/efile/password/default.cfm
What is reported and why?
Taxpayers are required to provide the previous year’s fiscal information. For example, taxpayers filing this year will report 2022 fiscal year’s information, including ownership structure and detailed financial and operating data. According to the BEA, the BE-12 survey is the most comprehensive of all BEA surveys; accordingly, taxpayers should be prepared to allot additional time to complete it.
The economic data collected by the BEA of the Department of Commerce in the BE-12 survey is used by the U.S. government, businesses and the public. It is used to produce key statistics, including the U.S. gross domestic product and foreign trade. Business leaders, policymakers and researchers use the information to make informed decisions about hiring and investing and analyze the impacts of direct investment on taxes, wages, jobs, and productivity.
Are extensions available?
Reasonable requests for an extension are normally granted if requested before the applicable filing deadline.
Other BEA surveys for foreign investors
Foreign investors who purchase, establish, or expand a U.S. business must generally file a BEA-13 survey within 45 days of the purchase or establishment of the business or from when the expansion has begun. Additionally, for 2022 reporting, tax payers who would normally file an annual BE-15 survey will file the benchmark BE-12 survey instead.
Do I need to file?
If you believe you have a filing obligation or are unsure if you need to file, please contact your WG advisor for further guidance or assistance as soon as possible.
