Census of Foreign Capital in Brazil: mind the five-year report to Bacen

This year, from July 1 to August 16, 6 p.m., the Central Bank of Brazil (Bacen) receives declarations regarding the Five-Year Census of Foreign Capital in the Country.

The Five-Year Census refers to years ending in zero (0) or five (5), while the Annual Census refers to the other years. For both censuses, the reference date is December 31 of the previous year.

Economic, accounting, and commercial information of legal entities or investment funds must be stated, including information on the corporate structure and on partners or investors residing outside Brazil.

Bacen promotes this survey in order to map external sector statistics and gather records that assist in elaborating research and defining economic policies.

Duty

The submission is mandatory to:

• Legal entities located in Brazil, with direct participation, in any sum, of foreign investors in their equity, concerning the reference date December 31, of the base year;
• Administrators of investment funds with foreign investors, concerning the reference date December 31, of the base year;
• Legal entities located in Brazil, with total outstanding balance of short-term commercial credits (due in up to 360 days) granted by non-residents, in a sum of U$ 1 million or more, concerning the reference date December 31, of the base year.

The following are exempt from submission:

• Individuals;
• Public Administration federal departments, States, Federal District, and municipalities;
• Legal entities owing external credit transfer, granted by institutions located in Brazil;
• Nonprofit organizations maintained by foreign contributors.

Fine

If the declaration is submitted late and/or contains incorrect, incomplete, or false information, Bacen may impose a fine of up to 250,000 BRL.

Fulfillment of duties to Bacen

Domingues e Pinho Contadores has an expert team which prepares and delivers the Five Year and Annual Census of Foreign Capital in Brazil. Be sure of DPC's support to keep your business in compliance with Brazil Central Bank.