WASHINGTON (CN) – Businesses with at least $60 million in assets and transactions per year no longer will have to report certain transactions between U.S. parent companies that are banks, bank holding companies, or financial holding companies and their bank foreign affiliates, according to a proposed change to the Commerce Department’s quarterly survey of U.S. direct investment abroad.
The change is to bring U.S. reporting requirements in-line with international standards and eliminate duplication of reporting as the Treasury Department collects permanent debt and related interest payments by U.S. reporters through the Treasury International Capital System.
The threshold, raised from $40 million per year, was last set in 2006 and is stated in terms of the foreign affiliate’s assets, sales, and the absolute value of net income-either positive or negative.
The Bureau of Economic Analysis, U.S. Department of Commerce, conducts the survey to gather information on international capital flows and information related to international investment and trade in services. The bureau then computes and analyzes the U.S. balance of payments and the employment and taxes of U.S. parent and affiliate companies.
The bureau is asking for public comment on the proposed changes.
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