10% Ownership of Foreign Corporations – Mandatory Filing Requirement by 6/30/15

All U.S. entities (including tax-exempt organizations) that maintain at least 10% direct or indirect ownership of stock of a foreign corporation must file a benchmark survey (Form BE-10) with the Department of Commerce Bureau of Economic Analysis.

The original deadline for filing fewer than 50 BE-10 forms was May 29, 2015 but has been extended for all new filers until June 30.

The benchmark survey is accessible on the bureau’s website at http://www.bea.gov/surveys/respondent_be10.htm.The BEA survey, which is conducted every five years, helps the US government determine the extent of direct investment abroad.

Nonprofit organizations have abbreviated filing requirements and will be required to complete questions 1, 2 and 5 of Form BE-10A and, potentially, BE-10B, 10C or 10D. Links to all forms are available on the BEA website (per the above URL).

Should you have any questions about how this new requirement may affect you or your organization, or if you need assistance completing BE-10, please do not hesitate to give us a call.