Eduardo Castro, Flávia Ferraz, Melissa Moreira and Tathiana Bussab

In addition to the Annual Census of Foreign Capital in Brazil, legal entities and investment funds incorporated in Brazil must report to the Central Bank of Brazil the investments in their quotas and/or shares held by foreign investors, or the outstanding short term trade debts due to them, in order to comply with the Quinquennial Census of Foreign Capital in Brazil, which relates to the years terminated in 0 or 5.

The reporting under the Quinquennial Census must be submitted to the Central Bank by:

  1. Legal entities incorporated in the country, with direct ownership held by non-resident investors in their capital stocks, regardless of the amount, on December 31, 2020;
  1. Investment funds having their quotas directly held by non-resident investors on December 31, 2020; and
  1. Legal entities incorporated in the country, with an outstanding balance in short-term trade debts (due within 360 days), granted by non-resident lenders, equivalent to or above USD 1 million on December 31, 2020.

The reporting obligation mentioned above does not apply to the following persons and administrative bodies:

  • individuals;
  • direct administrative bodies of the Federal Government, states, the Federal District and municipalities;
  • legal entities that are debtors under on-lending foreign credit transactions granted by institutions headquartered in the country; and
  • not-for-profit entities maintained by the contribution of non-residents.

The Quinquennial Census reporting must be electronically submitted to the Central Bank through the website www.bcb.gov.br from July 1st, 2021, through 6 PM of August 16, 2021.

The manual containing detailed information on the content and requirements of the reporting is available on the website www.bcb.gov.br.

Those responsible for this report must store the documentation that supports the information provided for five years and make them available to the Central Bank upon request.

Failure to submit the report (or submitting it without complying with the applicable regulations) subjects the violator to a fine of up to BRL 250,000.00, under article 60 of BCB Circular No. 3,857, of November 14, 2017.

Sources: Law No. 4,131, of September 3rd, 1962; BCB Circular No. 3,795, of June 16, 2016; BCB Circular No. 3,857, of November 14, 2017.