The Federal Revenue (IRS) extended the term on the mandatory filing of information on beneficiary owners on the last week of 2018, immediately before the expiration of the original term, which is now of one hundred eighty (180) days from the effectiveness date of the new Normative Instruction (IN/RFB) 1,863/2018.
Such instruction revoked IN/RFB 1,634/2016, having not only extended the relevant filing term, but also included material modifications. The first one refers to the national legal entities, which, from now on, must file the information, under penalty of suspending their respective Corporate Taxpayers’ Register (CNPJ), as had already been determined for foreign entities.
Upon suspension of the CNPJ, legal entities may not enter into transactions with bank institutions, which may include using checking accounts, making financial investments or even take out loans.
The second material amendment refers to the new requirements imposed on publicly held corporations, which are no longer subject to the mandatory disclosure of the beneficial owner, which exception also includes their controlled companies. As such, IN/RFB 1,863/18 sets forth new criteria, to wit:
– shares must be traded in markets regulated by entities recognized by the Brazilian Securities and Exchange Commission (CVM), as listed at CVM’s website;
– corporations must be domiciled in jurisdictions requiring the public disclosure of any shareholders deemed relevant/material;
– no domicile or residence in tax havens or in jurisdictions subject to any privileged tax regime.
The document submittal form has remained the same, to wit, by means of a digital assistance brief to be filed at any Federal Revenue (IRS) unit, subject to prior scheduling of appointment.
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