June 2, 2015
Current News Update for American Expats: There are reports around the internet describing severe penalties for American owners of foreign corporations who have not yet filed US Commerce BE-10 forms.
In particular, some sharp readers are asking if we are required to file BE-10 forms for their Mexican corporations that hold their personal real estate, homes, properties.
I drilled into the US Govt’s BE-10 website and found that “NO”, “a U.S. person that does not meet the reporting requirements and that has not been contacted by BEA is not required to report any BE-10 form to BEA.”
From the official Instructions on filling out a BE-10:
“Ownership of foreign residential real estate by a business enterprise, the sole purpose of which is to hold the real estate for the personal use of the owner(s) of the business enterprise, is considered to be real estate held for personal use and therefore not subject to the reporting requirements. ”
………
For Americans who do own 10% of a foreign business that is not a corporation for personal real estate: Yes, you do have to file a BE-10 by June 30, 2015 for any foreign business enterprise owned in 2014.
Why now? One legal accounting website describes: “As this is a “benchmark year,” this reporting is required of all relevant persons, regardless of whether the Reporter has been contacted.”
We have written a detailed article on this that you can read at:
Requirements for US Citizens Who Own a Foreign Business or Corporation – 2015 BE-10 Filing
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Disclaimer: This information is not meant as legal advice. It is for educational and informational purposes only. Government policies vary between States and offices, and Mexican Government officials have broad discretion in how they individually enforce policies, so, your personal experiences may vary. See a professional for advice on important issues.
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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry
Surviving Yucatan 
If I’m a US person and I invest in a mexican private debt security–and I receive interest income–what tax rate to I pay on my interest income? For example, if I lend a mexican business $100 and it pays me 10% interest annually…my investment interest income would be $10. So, what tax rate should I expect to pay on that $10 of interest income
Thanks
Josh Roach
joshuaroach@gmail.com
Hi Joshua,
That needs to be answered by your accountant.
The old previous lowest rate was 2%.
The old graduated rates then increased up to a maximum of 35%.
steve