Five-Year Census of Foreign Capital in the Country

Five-Year Census of Foreign Capital in the Country

Since July 1, 2021, the Central Bank of Brazil – BACEN has been receiving the annual declaration regarding the Five-Year Census of Foreign Capital in the Country (“Quinquennial Census”), observing the parameters of BACEN Circular No. 3,795/2016.

The Five-Year Census is mandatory for submitting information for years ending in 0 (zero) or 5 (five) and must be completed, without fail, by 6 pm on August 16, 2021. The information for this year must be based on December 31, 2020.

In this sense, legal entities, including investment funds, that, until December 31, 2020, met any of the criteria below are required to declare:

• Legal entities based in the country, with direct participation of non-residents in their share capital, in any amount;
  
• Investment funds with non-resident shareholders, 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$1 million.

The objective of the Census of Foreign Capital in the Country is to obtain information about Brazil's external liabilities, especially the International Investment Position, so that the data makes statistics viable, helping researchers in the creation of plans in the political and economic sphere.

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

Corporate and M&A Team

Gabriel Corbage and Renata Mendes Borges