The Central Bank of Brazil ("BACEN") has regulated the Foreign Capital Census related to the year 2012. The Foreign Capital Census is conducted periodically to collect statistical information in order to provide subsidies for the formulation of economic policies.
According to the regulations, legal entities headquartered inBrazilare required to provide information to the Census in the following cases:
(i) if, on December 31, 2012, (a) any non-residents had direct participation in their capital at any amount and (b) their net worth of at least U$ 100,000,000 (one hundred million United States Dollars) and; and
(ii) if, on December 31, 2012, they were (a) debtors of short-term commercial credits (maturity date no longer than 360 days) granted by non-residents, and (b) the corresponding debt amount arisen from such short-term commercial credits was equivalent to at least US$ 10,000,000 (ten million United States Dollars).
Investment funds with non-resident investors shall inform, through their managers, the total amount of their assets and the participation of non-residents inthe fund, indicating the non-residents that individually held a participation of at least 10% inthe fundon December 31, 2012, complying with the minimum amount of investment of US$ 100,000,000 (hundred million United States Dollars).
The information shall be provided to the Census until 6 p.m., on August 15, 2013, through the declaration form available at BACEN's website (www.bcb.gov.br).
Failure to comply with the obligations indicated above or the provision of false, incomplete and incorrect information or outside the terms and conditions provided in the regulation may subject the party to penalties in the amount of up to R$ 250,000 (two hundred and fifty thousand reais) depending on the type of infraction.
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.