Companies residing in the country, registered in the National Registry of Legal Entities (CNPJ) of the Federal Revenue Service of Brazil, must submit the Annual Census of Foreign Capital in the Country, following the guidelines:

1) hold, among their partners, on the reference base date, individuals or organizations not resident in Brazil; and

2) have a balance of liabilities in trade credits with individuals or organizations not resident in Brazil.

The information declared electronically in the Census is compiled by the Central Bank of Brazil (BACEN) and disclosed in a consolidated manner, with statistical purposes of the sectors/activities of the companies, maintaining the confidentiality of investors/creditors and investees/debtors. It is important to note that BACEN may require the declarants, within a period of five years from the date of the declaration, to provide the supporting documentation of the information provided.

Is there a fine for failing to delivery or send false information?

The census declarations, in which evidencing false, incomplete, incorrect information or lack to apply in the proper deadline will be subject to the penalties imposed by the rules that regulate the registrations and the Census of Foreign Capital in the Country.

Annual Census of Foreign Capital in the Country

• Legal entities based in the country, with direct participation of non-residents in their share capital, any amount, and with net equity equal to or greater than the equivalent to USD 100 million (one hundred million dollars) on December 31st, 2021;

• Investment funds with non-resident shareholders and net equity equal to or greater than the equivalent to USD 100 million (one hundred million dollars) on December 31st, 2021, through their managers; and

• Legal entities based in the country, with total outstanding balance of short-term commercial credits (payable up to 360 days) granted by non-residents equal to or greater than the equivalent to USD 10 million (ten million dollars) on December 31st, 2021.

Who is exempted from rendering the census declaration?

• Natural persons;

• Management bodies of the Union, States, Federal District and Municipalities;

• Legal entities debtors of external credits granted by institutions based in the Country; and

• Non-profit entities held by contributions from non-residents.