Every five years, it’s time for companies and individuals in the United States to go through the familiar routine of filing the BE-12 report. The last time it was filed was in 2023, so the next deadline for BE-12 is in 2028! However, it is worth noting that the filing rules may change in 5 years. This legislatively mandated mandatory document causes excitement among entrepreneurs and investors as it plays a crucial role in analyzing the impact of foreign investment on the country’s economy. But what exactly is the BE-12 report, and who is required to file it? Let’s delve into the details.
The United States continues to adhere to its legislation, which requires certain companies and individuals to file the BE-12 report with the Bureau of Economic Analysis (BEA) every five years.
What is the BE-12 report?
It is a statistical document used to analyze the impact of foreign direct investment on employment, wages, productivity, taxes, and other related factors. Through the BE-12 report, the U.S. government assesses the scale and influence of foreign business on the American economy.
The report must be filed by June 30th of every fifth year using the eFile resource, either independently or with the assistance of specialists. Therefore, the next time it needs to be done is in 2028. According to U.S. legislation, failure to file the BE-12 report incurs a penalty ranging from $2,500 to $25,000. Additionally, a penalty of $10,000 may be imposed for willful failure to submit the report.
Who is required to file the BE-12 report?
The obligation to file the BE-12 report applies to every company registered in the United States in which a foreign individual or legal entity directly or indirectly owns/controls 10% (or more) of the equity (voting rights, securities, etc.) at the end of 2027. Even if such a company is not actively engaged in commercial activities, the report must still be filed. The duty to file the report also applies to every company or individual who owns real estate in the United States primarily used for paid rent.
Is it necessary to file the report if the company was liquidated or if you ceased to be its founder in 2027?
If the Bureau of Economic Analysis has notified you of the obligation to file the report, you must submit the “BE-12 Claim for Not Filing” form (statement of non-filing of the BE-12 report).
If you have not been notified by the Bureau of Economic Analysis, there is no need to file the report.
What does the report BE-12 look like?
There are several versions of the BE-12 report (BE-12, BE-12A, BE-12B, BE-12C). The specific version to be filled out depends on factors such as the structure of the entity and the company’s business volume. For example, if your U.S. company does not have any other affiliated U.S. company owning more than 50% of that company, and your assets or income amount to more than $60 million but less than $300 million, you need to complete the BE-12B report.
Now that you are familiar with the BE-12 report and its significance to the U.S. economy, the question arises: how to deal with these bureaucratic nuances? This is where the experts at Finevolution come to the rescue. They specialize in doing business in the United States and understand all these intricate rules and requirements. Our team is ready to help you correctly and timely complete the BE-12 report, allowing you to focus on the important aspects of growing your business.
Don’t waste time studying reporting complexities. Together, we will make the process as smooth and efficient as possible. Send a request through the form below or a message on Telegram/Viber, Whatsapp for consultations. Our working hours are 9:00-19:00 from Monday to Friday.
