Companies and investment funds incorporated in Brazil must submit a statement to the Census of Foreign Capital (Five-Year Census), regarding foreign investments in their quotas and/or shares, or the outstanding balance of short-term trade credits granted by non-residents.
What is it?
The Five-Year Census aims to compile statistical data on the foreign sector regarding: i) the corporate structure of a legal entity or investment fund headquartered in Brazil and specification regarding partners or non-resident investors; ii) the economic and accounting information of the legal entity or investment fund headquartered in Brazil; and iii) information on any liabilities with non-resident creditors in Brazil.
Who must do it?
It is mandatory to declare:
- companies headquartered in the Country, with direct participation of non-residents in its share capital, in any value, on 12/31/2020;
- investment funds with non-resident shareholders, as of 12/31/2020, through their managers; and
- companies headquartered in the country, with a total debit balance of short term commercial credits (payable within 360 days) granted by non-residents equal to or above the equivalent to US$ 1 million (one million US dollars), on 12/31/2020.
The following are exempt from declaring:
- natural person;
- direct administration bodies of the Union, states, Federal District, and municipalities;
- legal entities that are debtors of onlending of foreign credits granted by institutions headquartered in the country; and
- non-profit entities supported by contributions from non-residents.
The declaration must be transmitted electronically to the Central Bank between July 1st, 2021, and August 16th, 2021.
Those responsible for providing the information must keep for five years (counted from the base date of the declaration) the supporting documentation of the information provided to present it to the Central Bank, if requested.
Non-submission, or submission of the statement in non-compliance with applicable regulations, subjects the responsible parties to a fine of up to R$250,000.00, as provided in article 60 of BCB Circular 3,857/2017.
For further information, please contact our Corporate Law team, at firstname.lastname@example.org; email@example.com and/or firstname.lastname@example.org; or by phone: (19) 3203-2111.