According to the Circular No. 3,795, as of June 16, 2016, of the Brazilian Central Bank, the Five-Year Census of Foreign Capitals must be delivered in the years following the base year ending in zero (0) or five (5). For all other base years, the Annual Census of Foreign Capital shall apply.
The purpose of the measure is to compile statistics on the external sector, in particular the International Investment Position, subsidizing the formulation of economic policy and assisting the activities of economic researchers and international organizations.
In view of the above, from July 1 to August 16, 2021 (6 p.m.), the statement regarding the Five-Year Census must be submitted to the Brazilian Central Bank by: (i) all legal entities headquartered in Brazil, with direct participation of non-residents in their corporate capital, in any amount, on the base date of December 31, 2020; (ii) investment funds with non-resident quotaholders on the same base date, through their managers; and (iii) legal entities headquartered in Brazil, with debt balance equal to or greater than US$ 1 million in short-term commercial credits (payable in up to 360 days) granted by non-residents, on the base date of December 31, 2020.
It is worth mentioning that the next Annual Census will only occur in 2022 in relation to the base date of December 31, 2021, and will be mandatory for legal entities or investment funds headquartered in Brazil that, besides having participation of non-residents, shall also have net equity equal to or greater than US$ 100 million on such base date, or for legal entities headquartered in the country that have short-term commercial debts with non-residents in amount equal to or greater than US$ 10 million on such base date.
In addition, individuals, legal entities that are debtors of onlend foreign credits granted by institutions headquartered in Brazil, and non-profit entities supported by contributions from non-residents, are exempt from delivering both Annual and Five-Year Census to the Brazilian Central Bank.
The non-submission or late submission of the Five-Year and Annual Census information to the Brazilian Central Bank, or even the submission of false, incomplete or incorrect information, may subject the legal entities and investment funds mentioned above to the monetary penalties provided for in Brazilian Central Bank Circular No. 3,857/2017, as amended.
