According to Circular No. 3,602, dated June 25, 2012, and Circular Letter No. 3,603, dated June 27, 2013, issued by the Central Bank of Brazil ("BACEN"), the information, with a base date of December 31, 2012, relating to the Annual Foreign Capital Census ("Annual Census"), the purpose of which is to collect information on foreign investments in Brazil, should be reported to BACEN by means of its electronic system available on its website, up until August 15, 2013.
The declarations required by the Annual Census must be provided by:
(i) legal entities with head offices in Brazil, the corporate capital of which bears the direct participation of non-residents, in any amount, and net equity equivalent to or higher than USD100 million, on December 31, 2012; and
(ii) legal entities with head offices in Brazil which have an unpaid balance of short-term trade liabilities (due within 360 days) equivalent to or higher than USD10 million, on December 31, 2012.
Furthermore, the managers of investment funds must state all of the investments held therein and the non-resident participation in the fund's assets, indicating the non-residents who have, individually, participations equivalent to or higher than 10% of the fund's assets, provided that the minimum amount of USD100 million is invested in Brazil on the base date.
The party responsible for supplying the information to BACEN must retain the supporting documentation for five years as from the base date, in order to present such documentation to BACEN whenever required.
It is also important to note that, according to the applicable legislation, the failure to supply information, provision of information that is false, incomplete, incorrect or not in compliance with the time periods established for the Annual Census shall subject the offenders to a fine of up to R$250,000.00 by BACEN.
The Corporate Finance Department of "Felsberg e Associados" remains at your disposal should you need any further clarifications in this regard.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.