São Paulo, June 2018
Brazilian Federal Revenue Service determines mandatory identification of beneficial ownership in the corporate registration (CNPJ) of domestic and foreign entities
The Brazilian Federal Revenue Service has required the mandatory identification of beneficial ownership in any transfer of assets, since the beginning of 2018, whether in Brazil or abroad.
The new rules apply to foreign entities owning such rights and assets, that either have interest in or wish to purchase interest in companies outside the capital market and that perform leasing transactions, vessel charters, equipment lease or import without exchange coverage to pay in capital in Brazilian companies, or which perform transactions on the purchase and sale of foreign currency with banks in Brazil.
Domestic entities must also report the information, whenever there is any amendment to articles of organization or incorporation that require modification to the Corporate Tax Register (CNPJ) or by December 31, 2018, thereby informing the relevant beneficial ownership, according to the rules applicable to legal entities.
Failure to meet the requirements imposed by the rules may prevent the legal entity from performing transactions with banks and financial institutions, including the use of checking accounts, making any investments of applying for loans, among other impediments and sanctions provided for in the applicable laws.
Assessor-Bordin has a specialized team to assist you on such matters – please feel free to contact us via e-mail firstname.lastname@example.org