Started on July 1st, 2016 the term for filing to the Central Bank of Brazil of the Census of Foreing Capital invested in Brazil in 2016 (base year 2015), with its regular term ending at 6pm of August 15, 2016.
All companies headquartered in Brazil with direct interest in its share capital from non-residents, regardless of the amount, are entitled the declaration in the five-yearly census 2016, based on the position of December 31, 2015.
Until 2011, the Foreing Capital Census was conducted every 5 years, and as of 2012, it started to take place annualy. On 2016, the Central Bank changed again the rules applicable to the census, establishing a fixed schedule and the annual and five-yearly submission, subject to certain criteria determined by Circular 3,795, of June 16, 2016.
The five-yearly census is defined as the census for the base dates of years ended in (0) and five (5), and legal entities domiciled in Brazil shall provide information based on the situation on December 31 of the relevant year. While the Annual Census refers to the base dates of all other years, and the information shall be provided based on the situation on December 31 of the relevant year.
While the Annual Census refers to the base dates of all other years, and the information shall be provided based on the situation on December 31 of the relevant year.
If the statement is not submitted in time, or is submitted with erros or flaws, or yet the non-delivery thereof, are subject to penalty up to BRL 250,000.00 by the Central Bank of Brazil.
Circular 3,795/2016 established that are exempt from the provision of information: (i) individuals; (ii) bodies of the Public Administration; (iii) legal entities entitled the payment of external credit granted by institutions headquartered in Brazil; and (vi) non-profit entities supported by funds of non-residents.
According to the standards, the Central Bank shall keep confidentiality on data received.
We summarized below the criteria determining the obligation of filing the census:
Therefore, reports of Annual and five-yearly census shall comprise all information necessary for the compilation of the external sector statistics related to: (i) corporate structure of the legal entity or investment fund headquartered in Brazil and specification as to non-resident partners or investors; (ii) accountancy and economical information of the legal entity or investment fund headquartered in Brazil; and (iii) information of obligations before creditors non-resident in Brazil.
Personae team is fully available for any additional information and to assist you in the preparation and submission of annual and five-yearly foreing capital census.
This publication contains summarized information and therefore is intended to provide only general guidelines. This publication is not intended to replace a detailed analysis and research of law or jurisprudence on the subject. Personae can not be held responsible for any loss occasioned by any person for actions related to the application of this material without proper technical advice of its partners and professionals.