Download "International Tax Alert - Form BE-12 ... - Plante Moran
Download "International Tax Alert - Form BE-12 ... - Plante Moran
Download "International Tax Alert - Form BE-12 ... - Plante Moran
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April 2013<br />
<strong>Form</strong> <strong>BE</strong>-<strong>12</strong> Benchmark Survey <strong>Alert</strong> –<br />
REPORTING DUE MAY 31, 2013<br />
taxalerts.plantemoran.com<br />
Summary<br />
The U.S. Department of Commerce’s Bureau of Economic Analysis requires a U.S. business enterprise to file<br />
<strong>Form</strong> <strong>BE</strong>-<strong>12</strong> Benchmark Survey if a foreign person (including legal entities) directly or indirectly holds a voting<br />
interest in the U.S. business enterprise of 10% or more. If the U.S. business enterprise is required to file <strong>Form</strong><br />
<strong>BE</strong>-<strong>12</strong>, it must include all U.S. business enterprises in which it has more than a 50% ownership interest in<br />
voting securities. A U.S. business enterprise includes corporations, LLCs, partnerships, and certain direct U.S.<br />
real property ownership.<br />
The penalty for failing to file the report shall not be less than $2,500 and not more than $25,000. In general,<br />
most clients should complete their survey online. As the survey involves primarily statistical data, reporting<br />
company personnel will usually be in the best position to provide the information and complete the online<br />
forms. There may be certain situations in which a reporting company may want <strong>Plante</strong> <strong>Moran</strong> to assist with the<br />
forms.<br />
<strong>Form</strong> <strong>BE</strong>-<strong>12</strong><br />
The <strong>BE</strong>-<strong>12</strong> Benchmark Survey is <strong>BE</strong>A’s most comprehensive survey of foreign direct investment in the United<br />
States. The benchmark survey is conducted once every five years in lieu of the <strong>BE</strong>-15 annual survey. If<br />
required, the U.S. affiliate should file one of the forms below with the Bureau of Economic Analysis.<br />
A. <strong>Form</strong> <strong>BE</strong>-<strong>12</strong>A – Report for a majority‐owned U.S. affiliate with total assets, sales or gross operating<br />
revenues, or net income greater than $300 million (positive or negative). A U.S. affiliate is "majorityowned"<br />
if the combined direct and/or indirect voting ownership interests (or the equivalent) of all foreign<br />
owners of the U.S. affiliate exceeds 50 percent.<br />
B. <strong>Form</strong> <strong>BE</strong>-<strong>12</strong>B – Report for (1) a majority‐owned U.S. affiliate with total assets, sales or gross operating<br />
revenues, or net income greater than $60 million (positive or negative), but not greater than $300<br />
million (positive or negative), and (2) a minority‐owned U.S. affiliate with total assets, sales or gross<br />
operating revenues, or net income greater than $60 million (positive or negative). A U.S. affiliate is<br />
"minority‐owned" if the direct and/or indirect voting ownership interests (or the equivalent) of all foreign<br />
owners of the U.S. affiliate are 50 percent or less.<br />
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C. <strong>Form</strong> <strong>BE</strong>-<strong>12</strong>C – Report for a U.S. affiliate with total assets, sales or gross operating revenues, and net<br />
income less than or equal to $60 million (positive or negative). A U.S. affiliate with total assets, sales or<br />
gross operating revenues, and net income of $20 million or less (positive or negative) is required to<br />
report only selected data items on the <strong>BE</strong>‐<strong>12</strong>C form.<br />
D. <strong>Form</strong> <strong>BE</strong>-<strong>12</strong> Claim for Not Filing – Report for claiming exemption if a foreign person did not own 10%<br />
or more of the voting ownership (or the equivalent) in the U.S. business enterprise, that the U.S.<br />
business enterprise is fully consolidated or merged into another U.S. affiliate, or that the U.S. business<br />
enterprise was liquidated or dissolved. This report may be used for response by persons that are not<br />
subject to the reporting requirements of the <strong>BE</strong>‐<strong>12</strong> survey but have been contacted by <strong>BE</strong>A concerning<br />
their reporting status.<br />
Filing<br />
The current benchmark survey covers 20<strong>12</strong>. Electronic filing is available through <strong>BE</strong>A’s eFile system at<br />
www.bea.gov/efile. Copies of the report forms for paper filing and instructions are available on the <strong>BE</strong>A's<br />
website at www.bea.gov/fdi.<br />
If you have any questions, please contact your tax advisor or<br />
Phillip Davis<br />
Carla Smaston<br />
877.622.2257 ext. 3532 877.622.2257 ext. 3446<br />
phillip.davis@plantemoran.com<br />
carla.smaston@plantemoran.com<br />
The information provided in this alert is only a general summary and is being distributed with the understanding that <strong>Plante</strong> & <strong>Moran</strong>, PLLC is not<br />
rendering legal, tax, accounting, or other professional advice, position, or opinions on specific facts or matters and, accordingly, assumes no liability<br />
whatsoever in connection with its use.<br />
For additional information please visit the <strong>BE</strong>A’s web site at www.bea.gov/fdi or click the link below to view a PDF summary prepared by the <strong>BE</strong>A -<br />
http://www.bea.gov/surveys/pdf/current_Reporting_Requirements.pdf.<br />
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