By: André Jerusalem

On July 1st, the deadline for submitting the census of foreign capital in the country was opened, which aims to compile economic and financial data from companies and investment funds based in Brazil that have direct foreign equity participation.

There are two types of foreign capital census: annual and five-yearly.

In the case of wenso annual, the declaration must be made by legal entities headquartered in the country with direct participation of non-residents in their share capital, in any amount, and which have net equity exceeding US$100 million or which have short-term commercial credits (up to 360 days) granted by foreigners in an amount equal to or greater than US$10 million.

Still, the five-yearly census is applicable to all legal entities headquartered in the country that have (i) direct participation of non-residents in their share capital, regardless of the value of the shareholding or net equity, as well as (ii) short-term credits (up to 360 days) granted by foreigners, in an amount equal to or greater than US$1 million.

The deadline for submitting the five-year census is August 16, 2021. Companies that do not submit the annual census within the indicated deadline, or provide false, incomplete or incorrect data, will be subject to a fine of up to R$1,250,000.

Our Financial Law and Corporate Law team is available to clarify any questions related to the presentation of the five-year census.