With the main purpose of evaluating and preparing the economic statistics on foreign investment in the Brazilian economy, the Central Bank of Brazil conducts a Five-Year Census and an Annual Census on the foreign capital in the country, regulated by Circular No. 3,795/2016. The Five-Year Census refers to the dates of years ending in zero (0) or five (5), while the Annual Census takes place every year in which the Five-Year Census is not required.
In accordance with the provisions of the aforementioned Circular, the following entities are required to submit the statement related to the Five-Year Census (i) legal entities based in Brazil who have direct participation of non-residents in their corporate capital, in any amount; (ii) investment funds with non-resident investors; and (iii) legal entities based in Brazil with a total outstanding balance of short-term credit (payable in up to 360 days) granted by non-residents in an amount equal to or higher than the equivalent in reais to USD1 million.
The statement to be submitted to the Central Bank of Brazil gathers information about the corporate structure and economic and accounting situation of the legal entity or investment fund based in Brazil, specifications related to the partners or non-resident investors, and also information on liabilities with non-resident creditors. All information must have December 31 as its base date.
The Five-Year Census of 2016, with a base date on December 31, 2015, must be submitted to the Central Bank of Brazil before August 15, 2016. In accordance with Resolution No. 4,104/2012, the delay in delivering the Census statement imposes a fine equivalent to R$25,000 or 1% of the amount subject to statement, whichever is less.