domingo, julho 14, 2019

Ultimate beneficiaries must submit their ID to the Brazilian IRS

Companies established in Brazil must report to the Brazilian Internal Revenue Service (Receita Federal do Brasil) the name of their ultimate beneficiaries pursuant to Normative Ruling (Instrução Normativa RFB) 1864/18.
Non- submission of this information will entail suspension of their tax id (CNPJ number) and prohibition to deal with financial entities, such as banks. 
As a consequence, companies with their CNPJ number so suspended will not be able to file any amendments to their Articles of Association or By-Laws with the Company's Registry. 
This requirement does not apply where a company established in Brazil has as partners or shareholders individual persons, rather than corporate entities.
However, if they are held by  a corporate partner or corporate shareholder, the names of their respective individual owners must be reported to the Brazilian tax authority as so required by the Normative Ruling. 
In addition, this duty to report has been extended to corporate investors in the financial market. They must reveal who are their individual partners or individual shareholders as ultimate beneficiaries of the investment.
We will be pleased to assist our clients on this matter.