As a measure of prevention and fight against tax evasion, corruption and money laundering, the Brazilian Revenue Service published the Normative Instruction nº. 1.634, dated May 6th, 2016 (“IN 1634”).
The main rules are:
1. Indicate who is the final beneficiary
a. The natural person who ultimately – directly or indirectly – owns, controls or significantly influences an entity (holds more 25% percent), directly or indirectly;
b. The natural person on whose behalf a transaction is conducted.
Deadline: Companies must inform the final beneficiary by the deadline of December 31st, 2018.
Penalty: Any legal entity that does not fulfill the information regarding the final beneficiary in due date or does not submit the required documents specified in the IN, shall have its CNPJ’s enrollment SUSPENDED and may have their activities interrupted in Brazil
The PLBrasil Group has a team trained to evaluate and comply with the legal requirements of the Normative Instruction. In case you need any further clarification, or would like to know the amount of fees related to the process, please do not hesitate in contacting us.
The PLBrasil Group’s Foreign Capital teamis available to assist you with the records required by the Central Bank of Brazil in the channels below:
+55 (11) 3292-5050
nn.sp@plbrasil.com.br
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