The term for submitting the 2021 Five-Year Census for Foreign Capital in Brazil (date basis 2020) is already underway, as provided by Circular No. 3,795/2016 and No. 3,857/2017, both of the Central Bank of Brazil (BACEN).
Find below a summary of the relevant information about the procedure:
1. WHO NEEDS TO DECLARE?
The Five-Year Census refers to years ending in 0 (zero) or 5 (five) (for example, date basis 2020). The Five-Year Census Statement must be submitted by:
i. Legal entities headquartered in Brazil that, on 12.31.2020, have, in their corporate/shareholding structure, direct participation, in any amount, of partners/shareholders non-resident in Brazil (foreigners or Brazilians resident abroad);
ii. Legal entities headquartered in Brazil that, on 12.31.2020, have a total debt balance of short-term commercial credits (due in up to 360 days), in an amount equal to or over USD 1 million, granted by non-residents in Brazil (foreigners or Brazilians resident abroad); and
iii. Investment funds headquartered in Brazil that, on 12.31.2020, have investors non-resident in Brazil (foreigners or Brazilians resident abroad).
2. WHEN DO I NEED TO SUBMIT THE INFORMATION?
The term for filing the Five-Year Census statements began on 07.01.2021 and shall end at 6:00 pm on 08.16.2021.
3. FORM AND ADDITIONAL INFORMATION.
The Five-Year Census Statement Form for Foreign Capital in Brazil, the Declarant’s Manual, and other relevant information about the procedure are available on BACEN’s official website.
4. INFORMATION SAFEKEEPING.
Those responsible must keep the support documentation of the statement for five years, as of the date basis of the respective statement.
5. PENALTIES.
In case of delay, no submission, or submission of incorrect, false, or incomplete statements, the legal entity/investment fund shall be subject to penalties by BACEN, including fines of up to BRL 250,000.00.
The teams of Fraga, Bekierman e Cristiano Advogados are available to provide guidance and clarify any doubts on the matter.