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, 2019, 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, 2019, 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, 2019, 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 between July 1, 2020 and 6 PM on August 15, 2020.

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 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. 3,857/2017.

The Census of Foreign Capital in Brazil aims to compile statistics of the external sector, especially the International Investment Position, in order to subsidize the development of the economic policy and support the activities of the economic researchers and international agencies.

(BCB Circular No. 3,795/2016, Law No. 13,506/2017; and BCB Circular No. 3,857/2017).