New deadline to file Foreign Capital Annual Census Statement in Brazil

On the last July 3 the regular deadline to file the 2017 Foreign Capital Annual Census Statement in Brazil (Base-Year: 2016) began, ending on August 15, 2017, at 18:00:00pm.

Ruled by Law 4131, of September 3, 1962, the Foreign Capital Annual Census Statement in Brazil (Census) aims to collect information on the liabilities overseas of Brazil. The collected data in Census allows the Central Bank to present statistics and assist in economic policy as well as to provide subsidies to economic researchers and international organizations.

Who is required to provide information?

I. companies based in Brazil with direct interest of non-residents in its capital, in any amount, and equity, amounting to or higher than the equivalent to hundred million US Dollars on Dec-31-2016, under the translation into foreign currency rate at the date (USD 1.00 = BRL 3.26);

II. investment funds with non-residents shareholders and equity amounting to or less than the equivalent to one hundred and million US Dollars, in Dec-31-2016, through its directors; and

III. companies based in Brazil, with a total outstanding balance of short-term commercial credits (enforceable up to 360 days) granted by non-residents, amounting to or higher than an equivalent to ten million US Dollars, in Dec-31-2016, under the translation into foreign currency rate at the date (US$ 1.00 = BRL 3.26).

The company's liabilities with short term commercial credit are only those in which:

Resident importer in Brazil receiving goods or service committed to carry on payment to the non-resident exporter within 360 days;

Resident exporter in Brazil receiving payment from non-resident importer committed to send or provide service, within 360 days.

Who is exempted from providing information to the Census?

I. individuals;

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

III. foreign resources allocation indebted companies granted by institutes established in Brazil; and

IV. nonprofit organization maintained by non-resident contributions.

What are the penalties?

Failure to provide or providing false, incomplete, inaccurate or after the deadlines to Foreign Capital Census, subject violators to the following penalties:

I. Providing information after the deadline: penalty amounting to BRL 25,000.00 or 1% from the amount subject to statement, whichever is less;

II. Providing incorrect or incomplete information: penalty amounting to BRL 50,000.00 or 2% from the amount related to inaccurateness, whichever is less;

III. Non-filing the statement: penalty amounting to BRL 125,000.00 or 5% from the amount subject to statement, whichever is less;

IV. Providing false information: penalty amounting to BRL 250,000.00 or 10% from the amount of the information that should be provided correctly, whichever is less.