Through the publication of the Normative Instruction No. 1634/2016, amended by the Normative Instruction No. 1684/2016, the Internal Revenue Service of Brazil made it mandatory the provision of information relating to the final beneficiary of the following entities: (a) clubs and investment funds; (b) entities domiciled abroad, that in the country, are real estate holders; vehicles; vessels; aircraft; bank accounts; financial or capital market investments; or equity investments made outside of the capital market; (c) entities domiciled abroad that undertake, in the country, external leasing; chartering of vessels, equipment and simple lease rent; or importation of goods without exchange coverage, destined to the payment of capital of Brazilian companies; (d) foreign banks that carry out foreign currency purchase and sale transactions with banks in the country, receiving and delivering cash in the settlement of foreign exchange transactions; (e) unincorporated joint venture (SCP) linked to ostensive partners; and (f) shareholders of funds domiciled abroad.
Are considered final beneficiaries the individual who holds, directly or indirectly, more than 25% of the foreign entity's capital and/or holds or exercises preponderance in the corporate resolutions and the power to elect the majority of the managers of the entity, even if it does not control it.
The Foreign companies that have not complied with the new rules imposed by Normative Instruction No. 1634/2016 until December 31, 2018, may have they enrollments with the CNPJ/MF suspended, and will be prevented to perform transactions between the corporation and banks, among others.
Our corporate department is available for any clarification on the subject.
Gabriel Vieira Bastos – Corporate lawyer at Guarnera Advogadosback