Alerts
Declaration of the Beneficial Owner – Deadline
All Brazilian and foreign entities, enrolled with the Corporate Taxpayers’ Registration (CNPJ) before July 1, 2017, must inform their complete ownership structure, up to their ultimate beneficial owner, to the Brazilian IRS until December 31, 2018, pursuant to the Normative Ruling (IN) 1,634/2016, as amended.
For purposes of the IN 1,634/16, the ultimate beneficial owner is a natural person who, ultimately, owns, controls or significantly influences a given entity, directly or indirectly, or preponderantly holds the power to elect the majority of its managers, even without controlling it.
The information regarding the ultimate beneficial owner may be provided by means of: (a) physical mailing; (b) the electronic filing form of the Brazilian IRS; or (c) the transmission of the digital dossier, upon attendance at any office of the Brazilian IRS.
It is worth reminding that Brazilian and foreign entities, enrolled with the CNPJ after July 1, 2017, are equally required to inform the complete ownership structure, up to their ultimate beneficial owner, to the Brazilian IRS, but within the term of 90 days counted as of the obtainment of the relevant CNPJ, extendable for an additional 90-day period.
The failure to comply with the obligations set forth in the IN 1,634/16 shall result in the suspension of the CNPJ of the relevant entity and prevention from transacting with banks, including in connection with management of bank accounts, financial investments and obtainment of loans, except in case of transactions required for the return of the investment to the country of origin of the foreign investors and for the compliance with any obligations assumed prior to the suspension.
