The Census statement is mandatory for legal entities and investment funds in Brazil which held non-resident investor or shareholder direct interest in their share capital, regardless of the amount, and which, concomitantly, had a net worth equal to or greater than the equivalent of US$100 million, both on December 31, 2023.

Legal basis of the Annual Census of Foreign Capital in the Country

According to BCB Resolution No. 281 of December 31, 2022, which regulated the procedures and deadlines for the mandatory declaration of the Annual Census of Foreign Capital in Brazil, between July 1 and August 15, 2024, companies must transmit the declaration, with a base date of December 31, 2023.

The Central Bank of Brazil (BCB) conducts the Census of Foreign Capital in Brazil (Census) statement to compile statistics on the foreign sector, such as the Balance of Payments and the International Investment Position (IIP).

Is there a fine for non-delivery or submission of false information?

The statements of the Annual Census of Foreign Capital in Brazil that show false, incomplete, incorrect information or lack of timely delivery, will be subject to the penalties imposed by the rules that regulate the registration and census of foreign capital in the country.

Who must state the Annual Census of Foreign Capital in Brazil?

• Legal entities headquartered in the country, with non-resident direct interest in their share capital, regardless of the amount, and with a net worth equal to or greater than the equivalent of US$ 100 million (one hundred million United States dollars), on December 31, 2023; and
• Investment funds with non-resident shareholders and a net worth equal to or greater than the equivalent of US$ 100 million (one hundred million United States dollars), on December 31, 2023, through their officers.

Who is exempt from submitting the statement for the census?

• Individuals;
• Direct administrative bodies of the Union, States, Federal District, and Municipalities;
• Legal entities debtors of onlending of external credits granted by institutions based in the country; and
• Non-profit entities funded by contributions from non-residents.

With the repeal of Law 4.131/62 and its regulatory framework, legal entities headquartered in the country that exclusively hold an outstanding balance in short-term trade credits (payable within 360 days) granted by non-residents are no longer required to state the Census. Pursuant to Article 7 of BCB Resolution 281/22, the new rule on the obligation to state the Census is restricted to the non-resident investors’ share in the company’s capital or resident investment fund and the amount of their shareholders’ equity.