The deadline to file the Annual Foreign Capital Census in Brazil to the Central Bank

The regular deadline to file the 2018 Statement of Annual Foreign Capital Census in Brazil - Base Year 2017 has begun on July 2 and will end on August 15, 2018 at 6:00 pm.

The Census of Foreign Capital in Brazil (Census) ruled by Law 4,131 of September 3, 1962 aims to collect information on the liabilities abroad. The data collected in the Census allow the Central Bank to present statistics and assist in the elaboration of economic policies, and providing subsidies to economic researchers and international organizations.

Who is required to provide information?

I. Legal entities headquartered in Brazil, with non-residents direct participation in their capital, in any amount, and with shareholders' equity equal to or greater than the equivalent of USD 100 million, on Dec-31-2017, according translation rate on the date (USD 1.00 = BRL 3.31);

II. Investment funds with non-resident shareholders and shareholders' equity equal to or greater than the equivalent to USD 100 million, on Dec-31-2017, through its management board; and

III. Legal entities based in Brazil, with a total debit of short-term commercial credits (payable within 360 days) granted by non-residents, equal to or greater than the equivalent to USD 10 million, on Dec-31-2017, according to the date conversion rate (USD 1.00 = BRL 3.31).

The company’s liabilities that constitute short-term commercial credits are only those in which the:

• importer residing in Brazil receives good or service assuming the commitment to pay the non-resident exporter within 360 days;
• exporter resident in Brazil receives payment from a non-resident importer, assuming the commitment to send goods or provide service within 360 days.
 

Who is exempted from providing information to the Census?

I. Natural people;

II. The organs of Union, States, Federal District and Municipalities direct administration;

III. Legal entities liable for external repasses granted by institutions based in Brazil; and

IV. Non-profit entities maintained by contributions from non-residents.

What are the penalties?

Failure to supply or provide false, incomplete, incorrect information or after the deadline to Foreign Capital Census subject the infractors to the penalties provided for in Brazil Central Bank Circular 3,857, of November 14, 2017, as follows:

I. Provision of information after the deadline: a penalty of one percent (1%) of the amount subject to registration or statement, limited to BRL 25,000.00;

II. Provision of inaccurate or incomplete information: a penalty of two percent (2%) of the amount subject to registration or statement, limited to BRL 50,000.00;

III. Non presentation of the statement: a penalty of five percent (5%) of the amount subject to registration or statement, limited to BRL 125,000.00;

IV. Provision of false information: a fine of 10% (ten percent) of the amount subject to registration or statement, limited to BRL 250,000.