As a measure to prevent and combat tax evasion, corruption and money laundering, the Brazilian Federal Revenue ("RFB") published the Normative Instruction No. 1.863, dated of December 27th, 2018, which extends the deadline for national and foreign companies to indicate the Final Beneficiary ("IN 1863").
Any legal entity that does not fulfill the information , as well as do not present supporting documents, shall have its CNPJ's (Tax id) enrollment SUSPENDED and may have their activities interrupted in Brazil.
It is necessary to inform the Final Beneficiary to the RFB even in cases where the investment controller is a legal entity, such as a publicly-held company.
The RFB defines the Final Beneficiary as:
1. The natural person who, in the last instance, directly or indirectly owns, controls or influences the entity significantly; or the natural person on whose behalf a transaction is conducted.
2. A significant influence is assumed when the natural person:
a. Hold more than 25% (twenty-five percent) of the capital stock of the entity, directly or indirectly; or
b. Directly or indirectly, hold or exercise the preponderance in the social decisions and the power to elect the majority of the administrators of the entity, although without controlling it.
Deadline for indicating the Final Beneficiary: June 26, 2019.
Considering the bureaucratic procedures and the obligatory legalization of several documents, PLBrasil requests that the documents which support this declaration, be sent to our care until May 24th, 2019.
In case of doubts, clarifications and values of the fees involved in the process we are available on the channels below:
+55 (11) 3292-5050
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