The Normative Instruction (NI) of the Brazilian Federal Revenue No. 1.863 was published last December 28th, amending the regulation of the Brazilian National Taxpayers’ Register (CNPJ) and revoking the NI 1.634/2016.
The main novelty brought by the new NI is about the recent obligation to indicate the Ultimate Beneficial Owner of national and foreign entities enrolled with the CNPJ, first introduced by the former NI 1.634/2016.
The new rule of the Brazilian Federal Revenue granted existing and newly incorporated companies an extension of 180 (one hundred and eighty) days to file information about their ultimate beneficial owners. June 2019 is their new deadline.
The new regulation also (i) changes some rules for disclosure of information about corporate chain and ultimate beneficial owner of some entities already registered with the CNPJ (e.g., criteria for dispensing delivery of certain documents) and, (ii) extends the penalty for not filing information in due time, for all the companies required to provide such information, and not only those referred to on items V, XV, XVI and XVII of article 4, as was previously contemplated by article 9 of the NI No. 1,634/2016.
The companies which do not comply with the requirement to inform the Ultimate Beneficial Owner within the set deadline will have their CNPJ suspended and will be prevented from carrying out transactions with banking establishments, including transfers between current accounts in Brazil.