BE-10 Benchmark Survey: U.S. Direct Investment Abroad

The U.S. Department of Commerce’s Bureau of Economic Analysis (“BEA”) issues mandatory reporting requirements every five years for foreign entities owned by U.S. persons if the ownership is 10% or greater.

 
Within the U.S. government, the BEA is an agency that is entirely separate from the U.S. Treasury Department and the Internal Revenue Service. These filings are completely outside and separate from the scope of U.S. taxation and tax reporting. However, since these filings are a requirement in the United States, we wanted to bring this information to your attention.

Foreign Entities Owned by U.S. Persons (BE-10 Benchmark Survey)

This applies to all “U.S. persons” (individuals and businesses resident in the United States or subject to the jurisdiction of the United States) that had direct or indirect ownership or control of at least 10 percent of the voting stock (or equivalent) of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise at any time during the U.S. person’s 2024 fiscal year. In other words, anyone who is required to file U.S. tax returns and owns at least a 10% interest in a foreign entity at any time during 2024 is required to file.

The form to be filed includes one or more of the following from the Form BE-10 series, Benchmark Survey of U.S. Direct Investment Abroad – U.S. Department of Commerce, Bureau of Economic Analysis: 

-          BE-10A (Report for U.S. Reporter) 

-          Foreign Affiliates must be reported on BE-10B, BE-10C, or BE-10D. 

          ·  BE-10B (Report for Foreign Affiliate of U.S. Reporter) – for each majority-owned foreign affiliate for which the affiliate’s total assets, sales or gross operating revenues (excluding sales taxes) or net income after provision for foreign income taxes was greater than $80 million (positive or negative) at any time during the affiliate’s 2024 fiscal year.

          ·  BE-10C (Report for Foreign Affiliate of U.S. Reporter) – test is based on total assets, sales or gross operating revenues (excluding sales taxes), or net income after provision for foreign income taxes: 
                    } For the majority-owned foreign affiliate: greater than $25 million (positive or negative), but for which none of these items was greater than $80 million (positive or negative) at any time during the affiliate’s 2024 fiscal year, 
                    } For minority-owned foreign affiliate: greater than $25 million (positive or negative) at any time during the affiliate’s 2024 fiscal year, or 
                    } For each foreign affiliate for which none of these items was greater than $25 million (positive or negative) at any time during the affiliate’s 2024 fiscal year that is a foreign affiliate parent of another foreign affiliate being filed on Forms BE-10B or BE-10C. 

          ·  BE-10D (Report for Foreign Affiliate(s)) – for all foreign affiliates for which no one of the items: total assets, sales or gross operating revenues, excluding sales taxes, or net income after provision for foreign income taxes was greater than $25 million (positive or negative) at any time during the affiliate’s 2024 fiscal year. However, if this foreign affiliate owns another foreign affiliate being filed on Form BE-10B or BE-10C, the foreign affiliate parent must be filed on Form BE-10C. 

-          BE-10 Claim for Not Filing 

 The due date is May 30th, 2025

 
More information on the form and filing requirements can be found at https://www.bea.gov/be-10-benchmark-survey-us-direct-investment-abroad 

Once on that webpage, under “Information For…” (on the left panel), click on the link for BE-10 Respondents. There you will find, among other items, the following: 
·         Video Tutorials 
·         Frequently Asked Questions 
·         Instructions for New Filers 
·         Forms 
·         BE-10 Instruction Booklet 

 
There are civil penalties for failing to comply with these requirements. Civil penalties for failure to report range from $5,911 to $59,114. Willful failure to report carries a penalty of up to $10,000 and/or imprisonment of up to one year. The same applies to any officer, director, employee, or agent of any corporation who knowingly participates in such violations.