Tax Law Insights

The U.S. Department of Commerce, Bureau of Economic Analysis (BEA), conducts seven (7) mandatory surveys to collect information on direct investment. These seven surveys consist of an initial survey for any new in-bound direct investment, and then applicable quarterly, annual, and 5-year benchmark surveys. The purpose of the new foreign direct investment survey is to capture new investment transactions when a foreign direct investment relationship is created. The purpose of the quarterly survey is to report positions and transactions between a U.S. affiliate and its foreign parents, and between the U.S. affiliate and the foreign affiliates of the foreign parents. The purpose of the annual survey is to report annual financial and operating data of U.S. affiliates. The benchmark survey is conducted every five years and provides the most comprehensive coverage of business entities, transactions, and data on foreign investment in the U.S.

Benchmark Survey of Foreign Direct Investment in the United States

(Form BE-12)

Due Date: The benchmark survey is conducted every 5 years at the end of the fiscal period. The most recent benchmark survey covered the fiscal year ending in 2012.

1. Form BE-12A

• Filed for a majority-owned U.S. affiliate that has total assets, sales or gross operating revenues, or net income greater than $300 million.

1. Form BE-12B

• Filed for U.S. affiliates that meet the following criteria:
  • > A majority-owned U.S. affiliate that has total assets, sales or gross operating revenues, or net income greater than $60 million, but less than $300 million.
  • > A minority-owned U.S. affiliate that has total assets, sales or gross operating revenues, or net income greater than $60 million, but less than $300 million.

1. Form BE-12C

• Filed for a U.S. affiliate that has total assets, sales, or gross operating revenues, or net income of $60 million or less.
• If a U.S. affiliate has total assets, sales or gross operating revenues, or net income of less than $20 million, only selected data items on this form are filed.

1. BE-12C Claim If Not Filing Survey

• Filed if a U.S. affiliate meets one of the following criteria for exemption:
  • > The foreign voting ownership interest in the U.S. affiliate is less than 10 percent.
  • > The U.S. affiliate is fully consolidated or merged with the report of another U.S. affiliate.
  • > The U.S. business enterprise was liquidated or dissolved.