Every year the Central Bank conducts censuses on foreign investments in the country, with the objective of consolidating information on non-resident inflows of capital and general data on the foreign sector of the economy.
Who?
The statements for the Annual Census of Foreign Capital in the Country must be provided by:
• Legal entities based in the country with direct participation of non-residents in their capital stock (quotas or shares), in any amount and net worth equal to or higher than US$ 100 million, on the base date of December 31, 2021;
• Investment funds with non-resident investors and net worth equal to or higher than US$ 100 million, on the base date of December 31, 2021, by means of their managers; and;
• Legal entities headquartered in Brazil, with a total outstanding balance of short-term commercial credits (payable within 360 days) granted by non-residents, in an amount equal to or higher than the equivalent to US$ 10 million, on the base date of December 31, 2021;
Individuals, Government bodies, legal entities that owe lendings of commercial credits granted by institutions headquartered in the country and non-profit entities supported by contributions from non-residents are exempt from submitting the statement.
When?
The statements for the 2022 Annual Census - must be submitted between July 1st and August 15th, until 6pm.
Is there a fine?
Non-compliance or inadequate compliance with the obligation subjects the violator to the application of a fine by the Central Bank of Brazil - increasingly active in this area -, as follows:
• Making a registration or submitting a statement in disagreement with the deadlines provided for in the respective rules: 1% of the amount subject to registration or statement, limited to BRL 25,000.00;
• Providing incorrect or incomplete information: 2% of the amount subject to registration or statement, limited to BRL 50,000.00;
• Failure to register, failure to submit the statement, or failure to present documentation supporting the information provided to the Central Bank of Brazil:
5% of the amount subject to registration or statement, limited to BRL 125,000.00, or
• Providing false information in a registration or statement: 10% of the amount subject to registration or statement, limited to BRL 250,000.00.
Azevedo Sette Advogados Tax and Corporate Consulting teams are at your disposal for guidance and clarification of doubts on the subjected matter, as well as for assistance with the submission of the statement.