Reminder: Census of Foreign Capital in Brazil (Annual Declaration 2024)

The deadline for submitting to the Central Bank of Brazil (BCB) the annual declaration of the Census of Foreign Capital in Brazil (“Census“), for the base year 2023, ends on August 15, 2024, at 6 p.m., under the terms of BCB Resolution No. 281, of December 31, 2022, amended by BCB Resolution No. 348, of October 17, 2023, which deal with the transitional rules on the annual declarations to be provided by recipients of foreign direct investment.

1. Annual declaration for 2024BCB Resolution 348/2023 established the transitional rule according to which, in 2024, the annual declaration must still be provided through the current Foreign Capital Census system, maintaining the same deadline of August 15, 2024 (at 6pm) and following the rules below:

a) Who must make the annual declaration. Entities headquartered in Brazil which, on December 31, 2023, met one of the criteria mentioned below must file the declaration:

(i) legal entities headquartered in the country (a) with direct non-resident participation in their share capital, in any amount, and, cumulatively, (b) with net worth equal to or greater than the equivalent of US$ 100 million (one hundred million United States dollars), on December 31 of the base year; and

(ii) investment funds with non-resident shareholders and net assets equal to or greater than the equivalent of US$ 100 million (one hundred million United States dollars), as of December 31 of the base year, through their administrators.

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b) Who is exempt from making the declaration. The following are exempt from making this declaration: (i) natural persons; (ii) direct administration bodies of the Federal Government, States, Federal District and Municipalities; (iii) non-profit entities maintained by contributions from non-residents; and (iv) legal entities based in the country whose outstanding balance of commercial credits granted by non-residents is exclusively short-term (payable within 360 days).

2. 2025 Annual Declaration: In the absence of new changes to the rules, the 2025 annual declaration must be submitted through the Foreign Direct Capital Information System (SCE-IED), within the period from February 10 to March 31, 2025, according to BCB Resolution 348/2023 and the SCE-IED Declarant’s Manual.

3. Annual Declarations, as of 2026: The current rule establishes that, as of 2026, the annual declarations must be provided through the SCE-IED System, between January 31 and March 31 of each year, regarding the base date of December 31 of the previous year.

4. Penalties.Failure to provide or providing false, incomplete, incorrect information or information outside the deadlines and conditions set out in the regulations in force will subject violators to a fine, under the terms of BCB Resolution 131, of August 20, 2021, as amended by BCB Resolution 271, of December 13, 2022.

5. Purpose of the Census and Confidentiality of the Data Declared. It should be noted that the purpose of the Census is to collect information on Brazil’s external financing, so that the statistical data collected can serve as a subsidy for the formulation of Brazilian economic policy. The BCB will only disclose the statistical data compiled, so that the confidentiality of the individual information provided by each declarant will be preserved.

The Araújo e Policastro team is available to provide clarification on this matter and assist in the necessary steps before the BCB.