Annual Census of Foreign Capital in Brazil

The term for the submission of the Annual Census of Foreign Capital in Brazil initiated on July 01, 2022. The period for submission to the Central Bank of Brazil (“BACEN”) will expire on August 15, 2022, at 6 p.m.

Entities that must submit the Annual Census to BACEN are those that, on December 31, 2021:

1. held in the composition of their capital stock direct participation of non-resident investors in any amount and, simultaneously, obtained net worth equal to or higher than the equivalent in Brazilian Reais (at the official conversion rate on December 31, 2021) to USD 100 million; and/or
2. were debtors of foreign short-term commercial credits (payable up to 360 days) granted by non-resident investors in an amount equal to or higher than the equivalent in Brazilian Reais (at the official conversion rate on December 31, 2021) to USD 10 million.

Investment funds with non-resident investors and net worth equal to or higher than the equivalent to USD 100 million (at the official conversion rate on December 31, 2021) are also required to submit the respective census through their managers.

We highlight that the following persons are not subject to the referred obligation:

(i) natural persons;

(ii) Government bodies;

(iii) entities that are debtors of on-lending foreign credits granted by institutions based in Brazil; and

(iv) non-profit entities maintained through contributions from non-residents.

The following scenarios can incur the application of fines: (i) failure to provide the required information, and (ii) submission of false, incomplete or incorrect information or late submission of the census.

Such fines can amount to:

(i) 1% of the amount subject to registration, limited to BRL 25,000.00 in the case of late submission of the census;

(ii) 2% of the amount subject to registration, limited to BRL 50,000.00 in the case of submission of incorrect information;

(iii) 5% of the amount subject to registration, limited to BRL 125,00.00 in the case o failure to submit the registration; and

(iv) 10% of the amount subject to registration, limited to BRL 250,00.00 in the case of submission of false information.Pursuant to the applicable rules, BACEN must treat the data received within the scope of the census as confidential.

Our Banking & Finance team is available to provide additional information and to assist with the submission of the Annual Census of Foreign Capital.