Brazilian Central Bank obligations

In accordance with the legislation in force as well as the Brazilian Central Bank regulation, there are certain obligations to be observed in 2019 by the companies with foreign capital.

 

1 – Periodic Declaration of Foreign Direct Investment

Companies that are recipient of foreign direct investment with net equity or total assets equal to or greater than R$ 250,000,000.00 (two hundred and fifty million reais) must report quarterly, through the so-called Economic-Financial Statements, according to the terms below:

  

• Base date 12/31/2018: until 03/31/2019

• Base date 03/31/2019: until 06/30/2019

• Base date 06/30/2019: until 09/30/2019

• Base date 09/30/2019: until 12/31/2019

 

Companies that are recipient of foreign direct investment with equity or total assets less than R$ 250,000,000.00 (two hundred and fifty million reais) must report in the following period:

  

• Base date 12/31/2018: until 03/31/2019

 

Penalties

Failure to present or submit the information to the Brazilian Central Bank after the deadline, or to submit false, incomplete or incorrect information, will subject the responsible to the payment of a fine.

 

 

2 – Changes in the corporate capital

As a rule, the occurrence of an event that changes the capital of the foreign investor requires updating the information in the Brazilian Central Bank’s system.

 

Deadline

The update must be carried out within thirty days from the date of the event. In the case of changes linked to foreign exchange transactions or international transfers in reais, the period starts on the date of settlement of the foreign exchange transaction or transfer.

 

Penalties

Failure to present or submit the information to the Brazilian Central Bank after the deadline, or to submit false, incomplete or incorrect information, will subject the responsible to the payment of a fine.

 

 

 3 – Census of Foreign Capital in Brazil 

The Annual Census aims to collect information of foreign capital in the Brazilian economy.

 

It is mandatory to:

• the legal entities headquartered in the country, with direct participation of non-residents in their capital stock, in any amount, and with net equity equal to or greater than the equivalent of US$ 100,000,000.00 (one hundred million dollars) in 12/2018;

 

• the investment funds with non-resident shareholders and net equity equal to or greater than the equivalent of US$ 100,000,000.00 (one hundred million dollars), in 12/31/2018, through its officers; and

 

• the legal entities headquartered in Brazil, with a total balance of short-term commercial credits (payable up to 360 days) granted by non-residents equal to or greater than the equivalent of US$ 10,000,000.00 (ten million dollars), on 12/31/2018.

  

Deadline

07/01 to 08/15 (until 6pm)

 

Penalties

Failures to provide or provide false, incomplete, incorrect or outdated information subject the violators to a fine.

 

In addition, there is the declaration of Brazilian capital abroad.

 

4- Brazilian Capital Abroad (“CBE”)

CBE are amounts of any nature held outside the country by individuals or legal entities which are resident, domiciled or headquartered in the country. The Brazilian Capital abroad comprehend assets, rights or financial instruments, currencies, deposits, real estate, corporate interest, stocks, securities, commercial credits, etc.

 

The declaration of the CBE is mandatory for the individuals or entities above mentioned who have assets outside of the country totaling an amount equal or superior to:

 

• US$ 100,000.00 (one hundred thousand dollars), or equivalent amount in other currencies, on the base date of December 31st of 2019 – Annual CBE.

 

• US$ 100,000,000.00 (one hundred million dollars), or equivalent amount in other currencies, on the base dates of March 31st, June 30th and September 30th of 2019 – Quarterly CBE.

 

Deadlines

•Annual declaration (base date 12/31):

02/15 to 04/05 (until 6pm)

 

•Quarterly statement (base date 03/31):

04/30 to 06/05 (until 6pm)

 

•Quarterly statement (base date 06/30):

07/31 to 09/05 (until 6pm)

 

•Quarterly statement (base date 09/30):

10/31 to 05/12 (until 6pm)

 

Penalties

Failure to provide or provide false, incomplete, incorrect or outdated information subjects the violator to a fine.

  

Should you need any assistance, please do not hesitate to contact us.