The period for declaration of the annual census of foreign capital in Brazil commenced on July 1, 2019.
The entities that must submit the annual census to the Central Bank are those that, as of December 31, 2018:
- held non-resident direct interest in its capital stock in any amount and simultaneously held net equity equal to or higher than the equivalent of USD 100,000,000.00 (one hundred million US dollars); and/or
- were debtors of short-term external commercial credit (payable up to 360 days) granted by non-residents in an amount equal to or higher than the equivalent of USD 10,000,000.00 (ten million US dollars) at the conversion rate of December 31, 2018.
Investment funds with foreign shareholders and net equity equal or higher than the equivalent to USD 100,000,000.00 (one hundred million US dollars) are also obliged to submit to the census through their officers.
The period for declaration is from July 01 to August 15, 2019.
The following parties are exempt from submitting to the census:
- natural persons;
- organs of the Public Administration;
- Legal entities that are debtors to onlending of external credits granted by institutions based in Brazil; and
- non-profit entities maintained by contributions from non-residents.
The following situations will result in a fine of those entities obliged to submit their declarations, according to article 60 of Central Bank Circular 3.857/17: the lack of submission of the required information, false, incomplete or incorrect information or late submission of declaration. The fines may range from BRL 25,000.00 (in the case of late submission) to BRL 250,000.00 (in the case of submission of false information).
According to the rules, the Central Bank must treat the data they will receive as confidential.
Our Banking and Restructuring team is available for any additional information and to assist you with the declaration for the census of foreign capitals to the Central Bank.