Census of Foreign Capital in the Country

On July 1, 2022, the Central Bank of Brazil – BACEN began receiving the Annual Census of Foreign Capital in the Country (“Annual Census”), observing the parameters of BACEN Circular No. 3,795/2016.

The Annual Census is mandatory in relation to the base dates of years not ending in 0 (zero) or 5 (five). For this year, the base date is December 31, 2021.

In this sense, legal entities, including investment funds, that, by December 31, 2021, met any of the criteria below are required to declare:

1. Legal entities based in the country, with direct participation of non-residents in their share capital, in any amount, with net worth (“PL”) equal to or greater than the equivalent of US$100 million (one hundred million dollars) on the base date;

• Investment funds with non-resident shareholders, and with PL equal to or greater than the equivalent of US$100 million (one hundred million dollars) on the base date, through their administrators; and

• Legal entities based in the country, with a total outstanding balance of short-term commercial credits (due within 360 days) granted by non-residents, in an amount equal to or greater than the equivalent of US$10 million (ten million dollars) on the base date.

The deadline for submitting the Annual Census will be at 6 pm on August 15, 2022.

Failure to provide or provide false, incomplete, incorrect information or outside the established deadlines and conditions subject offenders to payment of fines ranging from R$ 25,000.00 (twenty-five thousand reais) to up to R$ 250,000.00 (two hundred and fifty thousand reais), as determined by article 60 of Circular nº 3,857, of 2017.

You will be exempt from submitting the Annual Census:

1. Individuals;

• Direct administration bodies of the Union, States, Federal District and Municipalities;

• Legal entities debtors of external credit transfers granted by institutions headquartered in the country; and

• Non-profit entities supported by contributions from non-residents.

In accordance with current legislation, the Central Bank must treat all information received as confidential.

Our Corporate team | M&A is available for further clarification and assistance in fulfilling this obligation.

CORPORATE | M&A