UHY Advisors: International Surveys: Foreign and US Direct Investments

11 March, 2020   -   By Luisa Almazan

This post is also available in: Français (French)

While there are countless amounts of reporting requirements for domestic and international companies, one of the lesser-known requirements is mandated by the Bureau of Economic Analysis of the US Department of Commerce (BEA). The BEA conducts research and analysis on foreign and US direct investments quarterly, annually, and every five years. 

US investors in foreign businesses should be acquainted with the BE-10, BE-11, BE-577 forms The BE-10 is required to of any US person that owns a foreign affiliate – that is, had direct or indirect ownership or control of at least 10 per cent of the voting stock of an incorporated foreign business. The BE-10 benchmark survey is the BEA’s most comprehensive survey and is conducted once every five years in place of the BE-11 annual survey. Form BE-10 is due by May 29, 2020. The BE-11 annual survey is conducted during the four years in between benchmark surveys and it is due by May after the close of those years. 

Form BE-577 is required for each directly owned foreign affiliate whose assets, sales, or net income exceed $60 million at any time during the year. It is also required for each indirectly owned foreign affiliate with intercompany receivables or payables balances with its US parents of more than 1$ million. Form BE-577 is due within 30 days after the end of every calendar or fiscal quarter in which these thresholds are met. The deadline is 45 days when reporting the final quarter of the financial reporting year in which these thresholds are met. 

Foreign investors should be familiar with the BE-13 and BE-15 forms. US businesses that are owned or controlled directly or indirectly, by a foreign person, must be in compliance with these requirements. The BE-15 form is due May 31, 2020, or by June 30, 2020, for reports submitted via e File. The BE-13 form is due no later than 45 days after the acquisition is completed, the new legal entity is established, or the expansion has begun. The specific form that is required to be filed is dependent on two factors. The factor includes the type of investment and the total dollar amount of the investment. 

While these forms are not difficult to complete, being aware of them is of the utmost importance. The reason why these surveys are so important is far less about the content, but rather the consequences companies face if they do not file these forms. Failure to files these forms exposes any US enterprises to a civil penalty between $2500 and up to $4500. 


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UHY Victor Response to the Spread of COVID-19

UHY Victor is taking action to maintain the health and welfare of our team, our clients and support communal efforts to respond to the coronavirus pandemic.

UHY Victor will remain open during this difficult period and client services will continue. We have implemented contingency plans which allow us to continue to operate as we all deal with the spreading pandemic.

In light of the present situation we have introduced the following measures:

  • Our staff and procedures have been structured so that our team can work remotely.
  • Our IT infrastructure and data are protected by cutting edge security systems.
  • To the extent possible, client meetings will be held through web meetings and other remote solutions.
  • Employees who experience the primary symptoms such as fever, cough and respiratory difficulties will work remotely until cleared.
  • Internally, we emphasize the importance of “social distancing”, and have enhanced our internal cleaning and disinfecting protocols.

UHY Victor will continue to monitor the changing situation and, will respond proactively as this major health challenge evolves.

We encourage all to stay informed and to visit the Public Health Agency of Canada COVID-19 site, and follow the guidelines set out by the government of Canada:

  • Now and always during cold and flu season, stay home if you are sick. Encourage those you know are sick to stay home until they no longer have symptoms.
  • Since respiratory viruses, such as the one that causes COVID-19, are spread through contact, change how you greet one another. Instead of a handshake, a kiss or a hug, a friendly wave or elbow bump is less likely to expose you to respiratory viruses.
  • Practice frequent hand hygiene and coughing and sneezing etiquette. Clean and disinfect frequently touched objects and surfaces, such as toys and door handles.

For more information on the guidelines of the Government of Canada on how to be prepared for COVID-19: Click here.

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