Legal entities and investment funds incorporated in Brazil must submit a report to the Central Bank of Brazil, detailing investments in their quotas and/or shares held by foreign investors, or the outstanding short-term trade debts owed to non-residents, on December 31 of the previous fiscal year, in the following situations:
(a) legal entities must submit this report when, on December 31, 2017, they had a net worth equivalent to or in excess of one hundred million US dollars (USD 100,000,000.00), and, simultaneously, any direct ownership held by non-resident investors in their capital stock, regardless of the amount;
(b) legal entities must submit a report with respect to their current liabilities with non-resident lenders by means of debt instruments when, on December 31, 2017, they had an outstanding balance in short-term trade debts (due within 360 days) equivalent to or in excess of ten million US dollars (USD 10,000,000.00), regardless of any foreign equity ownership in their capital stock; and
(c) investment funds must submit a report when, on December 31, 2017, they had a net worth equivalent to or in excess of one hundred million US dollars (USD 100,000,000.00) and, simultaneously, quotas directly held by non-resident investors, regardless of the amount.
The reporting obligation mentioned above does not apply to the following persons and administrative bodies:
(a) individuals;
(b) direct administrative bodies of federal, state, Federal District, and municipal governments;
(c) legal entities who are debtors in the transfer of foreign loans granted by institutions headquartered in Brazil; and
(d) nonprofit entities maintained by the contributions of non-residents.
The report must be electronically submitted to the Central Bank through the website www.bcb.gov.br between July 2, 2018 and 6 PM on August 15, 2018.
The manual containing detailed information on the content and requirements of the report is available on the same website.
Those responsible for this report must store the supporting documentation for a period of five (5) years, counted as of the base date of the report, available for submission to the Central Bank upon request.
Failure to submit the report, or submitting a report that does not comply with the applicable regulations, subjects the violator to a fine of up to two hundred and fifty thousand Brazilian Reais (R$250,000.00), pursuant to article 60 of BCB Circular No. 3,857, of November 14, 2017.
(BCB Circular No. 3,795, of June 16, 2016, Law No. 13,506, of November 13, 2017; and BCB Circular No. 3,857, of November 14, 2017).
