The Brazilian Central Bank (BACEN) will perform the Five-Year Census of Foreign Capital in Brazil from July 1st, 2016 to August 15th, 2016, as established by the Ordinance no. 3.795, of June 16th, 2016.

Such Ordinance consolidated the regulations about the Five-Year and the Annual Census, defining that the Five-Year Census has as database the years ending in zero (0) and five (5), whilst the Annual Census refers to the other years.

Mandatory Statement in 2016 Census

The Declaration of Five-Year Census is mandatory to: (i) companies headquartered in Brazil with direct non-resident participation in the equity capital, in any amount, on December 31st, 2015; (ii) investment funds with direct non-resident participation, on December 31st, 2015; and (iii) companies headquartered in Brazil, recipient of short-term trade credits (with terms up to 360 days) granted by non-residents, if the related amount is equal or exceeding USD 1 million on December 31st, 2015.

The Annual Census, which will be required only in 2017, referring to the base date of December 31st, 2016, must be submitted by: (i) companies headquartered in Brazil with direct non-resident participation in the equity capital, in any amount, with net worth equal or superior to USD 100 million; (ii) investment funds with direct non-resident participation with net worth equal or superior to USD 100 million; and (iii) companies headquartered in Brazil, recipient of short-term trade credits (with terms up to 360 days) granted by non-residents, if the related amount is equal or exceeding USD 10 million.

Statement in the Census

The Declaration of Five-Year Census of Foreign Capital is available at the Brazilian Central Bank’s website, at the address www.bcb.gov.br.

Term Date

The period to submit the statement is from July 1st to August 15th, 2016.

Penalties

The delay or failure to declare, as well as the declaration with inaccurate, incomplete or false information, may subject the declaring legal entity to penalties, including fines up to BRL 250.000,00 (two hundred and fifty thousand reais).

The team of Fraga, Bekierman & Cristiano Advogados make themselves available to assist with the fulfilling of this obligation to BACEN.