On June 16, 2016, the Central Bank issued the Ruling
("Circular") No. 3,795, which revoked Ruling
("Circular") No. 3,602 of June 25, 2012 and
Circular Letter ("Carta Circular") No. 3,603, of
June 27, 2013. It is noteworthy that, apart from ratifying the
mandatory annual declaration of the Census of Foreign Capital in
Brazil, the new rule established a five-year declaration for such
Census of Foreign Capital, with conditions different than those
applicable to the annual census, as further detailed below.
According to the new rule, the Five-Year Census of Foreign Capital must be declared with respect to all years ending with zero (0) or five (5). On the other hand, the Annual Census of Foreign Capital must be declared for the other years.
Therefore, for this year of 2016, the Five-Year Census of Foreign Capital in Brazil will be required, pursuant to the following terms and conditions apply:
1. Who must declare to the Census:
1.1. Companies headquartered in Brazil that, on December 31st, 2015, had direct investment from non-residents, regardless of the amount of their net equity;
1.2. Investment funds with investment from foreign investors, regardless of the amount of their net equity or each foreign investors′ interest in such funds. The Census must be declared by the administrators of funds; and
1.3. Companies headquartered in Brazil that were debtors of short term commercial credits (payable in up to 360 days), which outstanding balance on December 31, 2015 was equal to or higher than US$1 million.
2. Form and Deadline
The entities mentioned above must complete the declaration of the
2016 Five-Year Census of Foreign Capital in Brazil and send it to
the Central Bank of Brazil during the period comprised between July
1, 2016 and August 15, 2016 at 6 p.m.
The declaration will be available at the Central Bank's website at http://www.bcb.gov.br/pt-br/#!/home
The failure or delay in providing the declaration to the Central Bank within the period mentioned above subject the declaring entity to a fine of up to R$125,000.00 (one hundred twenty five thousand Reais).
4. Who is released from presenting the declaration to the Central Bank:
4.2. Federal, State, Municipal and Federal District direct administration bodies;
4.3. Companies that have payables originated from credits extended by foreign entities to financial institutions headquartered in Brazil, and
4.4. Nonprofit organizations financially supported by foreign entities.
5. Supporting documentation
The declaring entities must keep available to the Brazilian Central
Bank the documents supporting the information provided to the
Census, during the five (5) subsequent years counted as of the date
on which the declaration is based.
Unfortunately our firm does not provide service of declaration on behalf of our clients. However should you need further information on this matter, please do not hesitate to contact us.
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.