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Deadline Approaching for Some U.S. Companies with Foreign Direct Investment to File with BEA

Deadline Approaching for Some U.S. Companies with Foreign Direct Investment to File with BEA

Deadline Approaching for Some U.S. Companies with Foreign Direct Investment to File with BEA

Every five years, U.S. companies in which a foreign person or entity holds an ownership interest with a right to vote, representing 10% or more of the company’s equity, are required to file a form with the U.S. Bureau of Economic Analysis (BEA) reporting specific operating, accounting and financial information. This is part of BEA’s monitoring of foreign direct investment in the United States.

Pursuant to the International Investment and Trade in Services Survey Act of 1976, failing to submit what’s known as a Benchmark Report may result in civil and, in certain circumstances, even criminal penalties.

2023 is a Benchmark year. The deadline to submit the Benchmark Report is May 31, 2023, or June 30, 2023, if filing online. Nevertheless, it may be possible to request an extension until July 31, 2023, or August 31, 2023 for online filing, depending on the company’s specific information. Note that in addition to the Benchmark Report, companies with foreign investment may be subject to filing other notices with the BEA under different deadlines, depending on their assets and liabilities.

You can learn more about this Benchmark filing requirement on the BEA website. Proper tax counsel is advisable to ensure compliance. Our International Tax Team is here to assist.


Juan D. Arau

Associate

Juan counsels clients in a variety of industries with their business and corporate matters, including tax issues, cross-border challenges, mergers, acquisitions, joint ventures, corporate restructuring, corporate governance, compliance, and a wide range of commercial agreements. He assists with the implementation of corporate strategies suggested to our clients. Prior to joining Procopio, Juan worked 12 years with Baker McKenzie in Mexico in their Tijuana and Guadalajara offices. During that time he formed part of their Corporate (M&A) Practice for 7 years, until he was entrusted to establish and lead the Foreign Trade and Customs Practice in their Tijuana office.

Juan counsels clients in a variety of industries with their business and corporate matters, including tax issues, cross-border challenges, mergers, acquisitions, joint ventures, corporate restructuring, corporate governance, compliance, and a wide range of commercial agreements. He assists with the implementation of corporate strategies suggested to our clients. Prior to joining Procopio, Juan worked 12 years with Baker McKenzie in Mexico in their Tijuana and Guadalajara offices. During that time he formed part of their Corporate (M&A) Practice for 7 years, until he was entrusted to establish and lead the Foreign Trade and Customs Practice in their Tijuana office.

Pedro E. Corona de la Fuente

Partner

Pedro advises clients in international estate planning, international tax and cross-border mergers and acquisitions. He focuses on U.S. investment structures, cross-border transactions, tax treaty planning, withholding obligations and reporting compliance on international transactions. The leader of Procopio’s International Tax practice, Pedro brings his clients experience in assisting clients and closely held companies with cross-border transactions involving the U.S., Mexico and other Latin American countries. He is a frequent speaker on international tax topics and recent tax developments affecting cross-border investments from and into Latin America.

Pedro advises clients in international estate planning, international tax and cross-border mergers and acquisitions. He focuses on U.S. investment structures, cross-border transactions, tax treaty planning, withholding obligations and reporting compliance on international transactions. The leader of Procopio’s International Tax practice, Pedro brings his clients experience in assisting clients and closely held companies with cross-border transactions involving the U.S., Mexico and other Latin American countries. He is a frequent speaker on international tax topics and recent tax developments affecting cross-border investments from and into Latin America.

Andrea Sánchez

Andrea is an International Legal Intern with Procopio.
Andrea is an International Legal Intern with Procopio.

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