Guarnera Advogados

+55 11 3488-4600 São Paulo
+39 02 4671-2721 Milan

INDICATION OF FINAL BENEFICIARY: Deadline postponed for 180 days

Through the publication of the Normative Instruction No. 1.863/2018, which revoked the Normative Instruction No. 1.634/2016 and 1.684/2016, the Internal Revenue Service of Brazil postponed the deadline for the indication of the final beneficiary for 180 (one hundred and eighty) days .

The obligation to indicate the final beneficiary, previously treated in the Normative Instruction No. 1.634/2016 and 1.684/2016, was maintained in the new Normative Instruction nº 1.863/2018, and, therefore, it remains mandatory to provide information related 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.

After the publication of the Normative Instruction nº 1.863/2018, the indication of the final beneficiary must be made until June 26, 2019. The non-indication of the final beneficiaries until deadline may result in the suspension of the registration before the CNPJ/MF of the entity domiciled abroad, and the impediment to carry out transactions between the legal entity and banking institutions, among others

If you wish to continue with the aforementioned indication of the final beneficiary, we kindly request that all necessary documentation must be sent to us until May 1st, 2019, so that we can proceed in a timely manner

Our corporate department is available for any clarification on the subject.Anna Lucia Gonçalves – Partner and head of the Corporate area at Guarnera Advogados.