WHAT IS IT? – Every 5 years the Central Bank of Brazil conducts a census of foreign capital, which consists of the mandatory submission of information related to companies with equity interest and investments held by non-residents in Brazil, always based on years ended on 0 and 5,
WHO SHALL DECLARE? – the Census must be submitted by the following entities:
- Legal entities headquartered in Brazil that, on December 31, 2020, had foreign equity investment regardless of the investment amount;
- Investment funds with non-resident shareholders on December 31, 2020, regardless of the investment amount;
- Legal entities based in Brazil, even if without any investment from non-residents, but that had a total debit balance of short-term commercial credits (up to 360 days) granted by non-residents in an amount equal to or greater than US$ 1 million on December 31, 2020.
DEADLINE: The deadline for submitting the statement related to the base year 2020 will be between July 1 and 6 pm of August 16, 2021.
WHAT SHOULD BE DECLARED?
- Information about the non-resident investor;
- Accounting information such as net equity, assets, liabilities, revenue, profits, results;
- Labor information such as number of employees, salary expenses and research and development expenses.
- Commercial information including export and import of goods, economic activity, and market value of the company.
MAIN CHANGES – what has changed from previous versions:
- It is NO LONGER POSSIBLE to use the net equity value as a valid valuation method of the reporting company for the “Market value” field;
- Inclusion of the “base month” field for the distribution of results (Dividends and Interest on Equity) of the declaring company, that is, the month in which the company’s results to be distributed were split from the Company’s equity; and
- More details on the income statements for the year.
Failure to provide or the provision of false, incomplete, incorrect, or out of date information subject the offenders to a fine of up to R$ 250,000.00.
For more information please contact:
Luiz Donelli – luiz.donelli@dsalaw.com.br
Eduardo Abreu Sodré – eduardo.sodre@dsalaw.com.br
Suzana C. Cencin Castelnau – suzana.castelnau@dsalaw.com.br
Tomas Arruda – tomas.arruda@dsalaw.com.br
