Key Takeaways:

  • The U.S. Bureau of Economic Analysis (BEA) is conducting its five-year benchmark survey relating to cross-border investment: BE-12 (Survey of Foreign Direct Investment in the U.S.).
  • Responses are due by May 31, 2023 (or by June 30, 2023 for reports submitted via eFile) from persons subject to the reporting requirements, whether or not they are contacted by the BEA.
  • Clients are reminded to regularly review their activities in connection with all BEA/Department of Treasury reporting requirements including the BE-13 (Survey of New Foreign Direct Investment in the U.S.).
  • Companies should take note that the U.S. Bureau of Economic Analysis (BEA) is conducting its five-year benchmark survey relating to cross-border investment: BE-12 (Survey of Foreign Direct Investment in the United States). The survey forms are available here and responses are due by May 31, 2023 or by June 30, 2023 for reports submitted via eFile.
  • The BE-12 survey occurs every five years and takes the place of the BE-15 Annual Survey of Foreign Direct Investment in the U.S. that would otherwise be due for 2022. A response is required from persons subject to the reporting requirements, whether or not they are contacted by BEA. The BEA is an agency of the U.S. Department of Commerce and provides statistics for U.S. economic accounts including data regarding cross-border economic activity.
  • A BE-12 report is required for each U.S. affiliate, i.e., for each U.S. business enterprise in which a foreign person or entity at the end of calendar year 2022 owned or controlled, directly or indirectly, 10 percent or more of the voting securities of an incorporated U.S. business enterprise (or an equivalent interest if an unincorporated U.S. business enterprise.)
  • New for this year, the BEA has added questions in Section F page 9 on digital economy activities in an effort to measure the digital economy. While some activities, such as cloud computing or digital intermediation services are likely to be applicable to entities within certain industries, other questions on digital ordering or delivery can be applicable to entities in many industries. Further guidance on these questions from the BEA is available here.
  • In addition, the BEA has also provided more guidance for reporting real estate investments on the BE-12C survey form. This guidance is available here.
  • Certain private funds may be exempt from filing if all of the following apply: (i) the U.S. business enterprise is a private fund; (ii) the private fund does not own, directly or indirectly through another business enterprise an "operating company" (being a business enterprise that is not a private fund or a holding company- in which the foreign parent owns at least 10 percent of the voting interest); and (iii) if the foreign parent owns the private fund indirectly (through one or more other U.S. business enterprises), there are no U.S. "operating companies" between the foreign parent and the indirectly-owned private fund. More information on private funds BEA filing requirements is available here.
  • Clients are reminded to regularly review their activities in connection with all BEA/Department of Treasury reporting requirements to ensure they are in compliance. BEA reporting may apply to companies that have cross-border structures or investments. In particular, clients are reminded that the BE-13 Survey of New Foreign Direct Investment in the United States is due no later than 45 days after the acquisition of a U.S. business is completed, a new U.S. legal entity is established, or the expansion of an existing U.S. business has begun.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.