We would like to remind our clients the deadline of next August 15th, at 6:00 pm, for the filing of the five-year Census statement of Foreign Capital in Brazil, with the base date of December 31st, 2015, as set forth by Central Bank Circular No. 3,795, dated June 16th, 2016, published on the Official Gazette on June 17th, 2016.
According to said circular, there are two types of foreign capital census, based on which the Central Bank of Brazil provides statistic compilation of the external sector:
(i) Five-year Census, as the one referring to the base dates of years ending in zero (0) or five (5);
(ii) Annual Census, referring to the base dates of the other years.
The following entities are required to file the Five-year Census:
(i) Companies headquartered in Brazil with direct shareholding by non-residents in their capital stock, in any amount on the respective base date;
(ii) Investment funds with foreign investors on the respective base date; and
(iii) Companies headquartered in Brazil, regardless of any foreign shareholding, with outstanding debt equal or higher than US$1 million (one million US dollars) in commercial credit in short-term (payable within 360 days), granted by non-residents, on the respective base date.
The next Annual Census, on the other hand, will be due in 2017, with the base date of 31st December, 2016. The following entities are required to file the Annual Census:
(i) Companies mentioned in the item (i) above with net worth equal or higher than US$100 million (one hundred million US dollars) on the respective base date;
(ii) Investment funds mentioned in the item (ii) above with net worth equal or higher than US$100 million (one hundred million US dollars) on the respective base date; and
(iii) Companies headquartered in Brazil, regardless of any foreign shareholding, with outstanding debt equal or higher than US$10 million (ten million US dollars) in commercial credit in short-term (payable within 360 days), granted by non-residents, on the respective base date.
Failure or delay to file the census statement with the Central Bank of Brazil, as well the submission of incomplete or false information relating thereto, may result in the imposition of pecuniary penalties of up to R$250.000,00 (two hundred fifty thousand reais), as provided for in Resolution No. 4.104/2012 of the Brazilian National Monetary Council.
For more information, please contact us through the email contato@cnflaw.com or the telephone number +55 (11) 3373-5070.
This legal alert was written and released with didactical and informative purposes only, and, therefore, shall not constitute legal advice or consulting for any hypotheses. To obtain specific orientation about the subject herein, please consult a lawyer.
