What is the BE-10 Report?

The BE-10 (Benchmark Survey of U.S. Direct Investment Abroad) is a mandatory report required by the U.S. Department of Commerce. This survey collects essential data from U.S. companies with direct investments in foreign affiliates. The information helps the U.S. government analyze economic relationships between U.S. businesses and international markets.

Who Must File the BE-10 Report?

1. U.S. Companies with Foreign Investments: Any U.S. business entity, including corporations, partnerships, and LLCs, that directly or indirectly owns 10% or more of a foreign affiliate must file the BE-10. 

2. Parent Companies: If your business is the U.S. parent of multiple foreign affiliates, you're responsible for submitting a complete set of forms covering each entity. 

3. Inactive or Dormant Foreign Entities: Even if a foreign affiliate is dormant or has no active operations, you must still file if your U.S. business held 10% or more voting interest in the entity at the end of the fiscal year. Activity status does not exempt you from the filing requirement. 

4. New U.S. Investors: If your company acquired 10% or more of a foreign business during the survey year, you're required to file the BE-10, even if this is your first time filing or you didn’t receive a BEA notification. The obligation applies based on ownership, not previous filing history. 

Importance of the BE-10 Report

1. Legal Requirement: Filing the BE-10 is not optional. It's part of U.S. statistical data reporting obligations, and non-compliance may result in civil and criminal penalties. 

2. Government Insight: The data collected helps policymakers understand trends in global investment, which affects trade policy, taxation, and economic strategy. 

3. No Tax Impact, But Mandatory: The BE-10 is not a tax return and doesn’t affect your tax bill, but failing to file can trigger investigations and fines from the Bureau of Economic Analysis (BEA). 

4. Global Compliance Strategy: Completing the BE-10 accurately supports your broader international compliance and ensures alignment with reporting duties for foreign assets and income. 

Regulations and Minimum Requirements

1. Filing Threshold: Required if your business owns, directly or indirectly, 10% or more voting interest in a foreign entity, as of the end of the fiscal year. 

2. Survey Frequency: The BE-10 is conducted every five years, but businesses with foreign investments should always stay prepared. 

3. Detailed Disclosure: The report requires information such as financials of the foreign affiliate, percentage of ownership, country of operation, industry, and transaction data. 

4. Penalties for Non-Compliance: Failing to submit a BE-10 or submitting false information can result in civil penalties up to $25,000, and willful violations can lead to criminal fines or imprisonment.