Alerts
Extension of the deadline to declare the Ultimate Beneficial Owner – June 28, 2019
On December 28, 2018 the Brazilian IRS enacted Normative Ruling No. 1,863/2018, which postponed for 180 days the deadline for the declaration of the ownership structure of the legal entities enrolled with the Corporate Taxpayers’ Registration (CNPJ) of the Brazilian IRS, up to their ultimate beneficial owner – or any of the legal entities excepted from said obligation according to Article 8, § 3rd of the Normative Ruling.
Accordingly, all Brazilian and foreign entities, enrolled with the CNPJ before December 28, 2018, must inform their complete ownership structure, up to their ultimate beneficial owner, to the Brazilian IRS until June 26, 2019, \8.
It is important to point out that, for purposes of the Normative Ruling No. 1,863/2018, 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 must be provided by means of the electronic filing form of the Brazilian IRS (DBE form), and physical mailing or the transmission of the digital dossier, upon attendance at any office of the Brazilian IRS.
The failure to comply with the obligations set forth in the Normative Ruling No. 1,863/2018 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.
