According to Circular Letter No. 3,603/13 of the Central Bank of Brazil, the deadline for submitting the declaration regarding the 2014 Annual Census of Foreign Capital in Brazil to the Central Bank of Brazil through its website, by the link https://www3.bcb.gov.br/censo2/login, ends at 6pm on August 15th.

Who must declare?
Legal entities with headquarters in Brazil that registered on December 31st, 2013:
I- direct investment by non-residents in its corporate capital, in any amount, whether in shares, quotas, or in any other form, and net worth equal to or greater than one hundred million dollars (USD100,000,000.00), according to the exchange rate of said date (US$ 1.00 = R$ 2.34); or
II- total balance due trade credits granted by non-residents, payable within 360 days (in short-term), and equal to or greater than ten million dollars (USD10,000,000.00), according to the exchange rate of said date (US$ 1.00 = R$ 2.34).

Moreover, administrators of investment funds headquartered in Brasil must inform the total amount of non-residents’ investments and the correspondent equity held by them, indicating those non-residents those who individually hold ten percent (10%) or more of the fund’s net worth, considering the minimum amount of one hundred million dollars (USD100,000,000.00) invested in the country on December 31st, 2013.

Who is exempt from the declaration?
I- Individuals;
II- the bodies of the direct administration of the Union, States, Federal District and Municipalities;
III- the legal entities debtors of foreign credits or loans extended by financial institutions with its headquarters in Brazil; and
IV- the non-profit entities supported by non-resident contributions.

Observations and Penalties:
The person responsible for the declaration shall retain, for five years from December 31, 2013, the documentation evidencing the information provided for submission to the Central Bank of Brazil, if necessary.
The failure to declare, within the referred period, or the false, incomplete or incorrect declaration subjects the responsible for the declaration to penalties that vary according to the infraction and can reach the maximum amount of R$250,000.00 according to art. 58º of Law No. 4.131/62, updated by Medida Provisória No. 2.224/01, and Bacen’s Resolution No. 4.104/12.