On June 25, 2012, the Central Bank of Brazil ("CBB") issued Circular nr. 3.602/2012 which established an "Annual Census of Foreign Capital" in the country ("Annual Census"). The aim of the survey is to collect information on foreign investment in Brazil. This information, using December 31, 2011 as the reference date, should be submitted to the CBB, by means of the electronic system available on the relevant page of the bank's website, by September 6, 2012.
Companies obliged to provide information for the Annual Census are:
(i) companies headquartered in Brazil which have any amount of direct foreign capital in them, and which have a net equity that is equal to or greater than US$ 100 million; and
(ii) companies based in Brazil which have a total outstanding balance of short-term trade credits (enforceable within 360 days), that are equal to or greater than US$ 10 million.
In addition to this, investment funds should state, through their administrators, the total sum of their investments and the respective participation of foreigners in their capital, highlighting those non-residents who have an individual share equal to or greater than 10% of the capital of the fund, considering the minimum amount of US$ 100 million invested in the country on the reference date.
The corroborating documentation concerning the information provided for the Annual Census should be kept on file, by those responsible, for a period of five years as of the date of the declaration, in order that it may be made available to the CBB whenever requested.
It should be stressed, furthermore, that the CBB issued Resolution nr. 4.104 on June 28, 2012, setting out the criteria for the application of penalties for infractions committed against the norms which regulate the registration and census of foreign capital in Brazil. Under such rulings, late delivery of the declaration for the Annual Census and/or presentation of incorrect, incomplete or false information could lead to the CBB applying fines of up to R$ 250,000.00.
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.