The term for the submission of the Annual Census of Foreign Capital in Brazil commenced on July 1, 2020. The period for submission will end on August 17, 2020, at 6 p.m.
The entities that must present the Annual Census to the Brazilian Central Bank are those that, on December 31, 2019:
a) had in the composition of their capital stock direct participation of non-resident investors in any amount and, simultaneously, accounted net worth equal to or higher than the equivalent in Brazilian Reais (at the official conversion rate on the date of December 31, 2019) to USD 100 million; and/or
b) were debtors of foreign short-term commercial credits (payable up to 360 days) granted by non-resident investors in an amount equal to or higher than the equivalent in Brazilian Reais (at the official conversion rate on the date of December 31, 2019) to USD 10 million.
Investment funds with non-resident shareholders and net worth equal to or higher than the equivalent to USD 100 million (at the official conversion rate on the date of December 31, 2019) are also required to submit the respective census through their administrators.
We emphasize that the following persons are not subject to the referred obligation: (i) natural persons; (ii) government bodies; (iii) entities that are debtors of onlending foreign credits granted by institutions based in Brazil; and (iv) non-profit entities maintained by contributions from non-residents.
In accordance with Article 60 of the Central Bank Circular No. 3,857/17, the following situations will subject non-compliant entities to a fine: (i) failure to provide the required information, (ii) the submission of false, incomplete or incorrect information or late submission of the census. The fines may range from 1% of the amount subject to registration, or, BRL25,000.00 (in the case of late submission of the census) to BRL250,000.00 (in the case of submission of false information).
Pursuant to the rules, the Central Bank must treat the data received within the census as confidential.
Our Banking & Finance team is available for any additional information you may require and to assist with the submission of the Census of Foreign Capital to the Central Bank.