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Every five years the Bureau of Economic Analysis (BEA) is required to collect information and compile statistics on the scale of foreign-owned business activities in the United States under the International Investment and Trade in Services Survey Act of 1976. This information is used by the federal government to analyze the impact of foreign investment on the U.S. economy. In general, with few exceptions, if a foreign person (an individual or an entity) owned or controlled, directly or indirectly, 10% or more of the voting securities in a U.S. entity at the end of the of the company’s fiscal year that ended in the calendar year 2022, the U.S. company is required to file a Form BE-12 in 2023.
2023 is a benchmark year, meaning that if you or a client met the above criteria at the end of the company’s fiscal year ending in 2022, a Form BE-12 must be filed. The deadline is May 31, 2023 if paper filing, or June 30, 2023 if filing online. The Form requires detailed information about the U.S. company and its finances, and comes with both penalties of over $50,000 and potential criminal charges for those who fail to file timely. If you are unable to finalize the Form by the deadline, there are extensions available (to July 31, 2023 if paper filing or August 31, 2023 if online filing) in certain circumstances and if requested before the deadline.
Please note that the actual form required to be filed will vary depending on the organizational structure, and the size and/or location of the foreign investment or affiliates, including, but not limited to, Form BE-12A, BE-12B, or BE-12C, supplemental schedules, and/or other similar Forms.
For further information, visit the BEA website and guide at https://www.bea.gov/sites/default/files/2018-04/a-guide-to-bea-direct-investment-surveys.pdf.
Please let us know if we can be of any assistance in determining if you or a client will need to file the Form BE-12 in 2023, or if you need assistance applying for an extension.
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