Every year, the Central Bank conducts census in connection to foreign investments in the country, with the goal of consolidating information on the contribution of capital from non-residents and general data about the foreign sector.
The Annual Census on Foreign Capital in the Country must be declared by legal entities and investment funds in Brazil that had non-resident shareholders or investors with direct equity holdings, in any amount, and that, concurrently, have total net assets equal to or superior to US$100 million, both on December 31st 2023.
The declaration referring to the 2024 Annual Census – base year 2023 – must be filed between July 1st and August 15th 2024, 6pm.
The nonperformance or inadequate performance of the duty may result in fines for the noncompliant investor by the Central Bank of Brazil – that has been consistently proactive in this area –, in the following terms:
- File the declaration in disagreement with the deadlines stated in the respective regulations: 1% of the value subject to registration or declaration, limited to R$25,000;
- Account for incorrect or incomplete information: 2% of the value subject to registration or declaration, limited to R$50,000;
- Not executing the registration, not filing the declaration, or not presenting evidentiary documents concerning information provided to the Central Bank of Brazil: 5% of the value subject to registration or declaration, limited to R$125,000, or
- Account for false information in the registration or declaration: 10% of the value subject to registration or declaration, limited to R$150,000;
Azevedo Sette Advogados’ Corporate and Tax teams are available to provide advisory and clarifications on the matter, as well as to assist in completing the declaration.