We hereby inform you that the Brazilian Central Bank ("BACEN") is promoting the Annual Census of Foreign Capital in Brazil ("Annual Census"), with a base date of December 31, 2013, in accordance with articles 55, 56 and 57 of Law No. 4,131/1962 and Circular No. 3,602/2012.
The results of the Annual Census shall be used to assess the amount and the effects of foreign capital in Brazil, in order to support the planning of the economic policy in Brazil. BACEN shall disclose the data collected by this research on a consolidated basis and shall take individualized information as confidential.
The information on foreign investments in Brazil shall be reported to BACEN from July 1, 2014 until August 15, 2014 (18:00), according to Circular Letter No. 3,603, dated June 27, 2013.
The declarations required by the Annual Census must be provided by legal entities, including investment funds with head offices in Brazil, which on December 31, 2013 fulfilled any of the following requirements:
- Net equity equivalent to or higher than USD100 million and, simultaneously, direct participation of non-residents, in any amount, in its corporate capital; and
- Unpaid balance of short-term trade liabilities (due within 360 days) granted by non-residents, equivalent to or higher than USD10 million, regardless of foreign participation in its corporate capital.
For the purpose of the Annual Census, the exchange rate informed by the BACEN on December 31, 2013 is: USD1.00 = R$2.34.
The failure to supply information or provision of information which is false, incomplete, incorrect or not in compliance with the time periods established for the Annual Census, shall subject the offenders to a fine up to R$250,000.00 (two hundred and fifty thousand Reais). Furthermore, it is important to note that the party responsible for supplying the information to BACEN must retain the supporting documentation for five years as from the base date.
Our firm is prepared to provide orientations and to implement the Annual Census, in case you are interested.
We remain at your disposal should you need any further clarifications.
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.