Lei nº 4.131, de 3 de setembro de 1962 - Disciplina a aplicação do capital estrangeiro e as remessas de valores para o exterior e dá outras providências (Law No. 4,131 of 3 September 1962 - Governs the application of foreign capital and remittances abroad, and other provisions)

English translation of the Portuguese text from planalto.gov.br (the Portuguese text is the official one). Retrieved 2026-10-26.

Presidency of the Republic

Civil House

Deputy Office for Legal Affairs

LAW No. 4.131, OF 3 SEPTEMBER 1962.

Compiled text

Regulation

Regulation

(See Decree No. 91.152, of 1985)

(See Decree-Law No. 2.469, of 1988)

Regulates the application of foreign capital and remittances of funds abroad and provides other measures.

I hereby make known that the National Congress decreed, the President of the Republic sanctioned, under the terms of § 2 of art. 70 of the Federal Constitution, and I, Auro Moura Andrade, President of the Federal Senate, promulgate, in accordance with the provisions of § 4 of the same article of the Constitution, the following Law:

Art. 1 Foreign capital, for the purposes of this law, is considered to be goods, machinery and equipment, entering Brazil without initial expenditure of foreign exchange, destined for the production of goods or services, as well as financial or monetary resources, introduced into the country, for application in economic activities provided that, in both cases, they belong to natural persons or legal entities resident, domiciled or headquartered abroad.

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Art. 2 Foreign capital invested in the Country shall be granted legal treatment identical to that granted to national capital under equal conditions, and any discrimination not provided for in this law is prohibited.

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

On the registration of capital, remittances and reinvestments

Art. 3 A special service for the registration of foreign capital, whatever its form of entry into the Country, as well as of financial operations with abroad, is instituted at the Superintendence of Currency and Credit, in which the following shall be registered:

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

a) foreign capital entering the Country in the form of direct investment or loan, whether in currency or in goods;

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

b) remittances made abroad as return of capital or as income from such capital, profits, dividends, interest, amortizations, as well as those of "royalties", or for any other reason that implies transfer of income outside the Country;

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

c) reinvestments of profits from foreign capital;

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

d) changes in the monetary value of the companies' capital made in accordance with the legislation in force.

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Sole paragraph. The registration of reinvestments referred to in letter "c" shall be due, even if it concerns a legal entity headquartered in Brazil but affiliated with foreign companies or controlled by a majority of shares belonging to natural persons or legal entities residing or headquartered abroad.

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Art. 4 The registration of foreign capital shall be made in the currency of the country from which it originated and that of reinvestments of profits in national currency. Sole paragraph. If the capital is represented by goods, the registration shall be made at its price in the country of origin or, in the absence of satisfactory proof, according to the values determined in the accounting of the company receiving the capital, or even by the valuation criterion determined in regulation.

Art. 4 The registration of foreign capital shall be made in the currency of the country of origin, and that of profit reinvestment simultaneously in national currency and in the currency of the country to which they could have been remitted, with conversion at the exchange rate of the period during which the reinvestment was proven to have been made. (Wording given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Sole paragraph. If the capital is represented by goods, the registration shall be made at its price in the country of origin or, in the absence of satisfactory proof, according to the values determined in the accounting of the company receiving the capital or even by the valuation criterion determined in regulation.

(Wording given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Art. 5 The registration of foreign investment shall be requested within thirty days from the date of its entry into the Country and independent of the payment of any fee or emolument. Within the same period, from the date of approval of the respective accounting record by the competent body of the company, the registration of profit reinvestments shall be carried out.

Sole paragraph. Foreign capital and respective profit reinvestments already existing in the country are also subject to registration, which shall be requested by their owners or those responsible, by the companies in which they are applied, within 180 days from the date of publication of this law.

Art. 5 The registration of foreign investment shall be requested within thirty days from the date of its entry into the Country and independent of the payment of any fee or emolument. Within the same period, from the date of approval of the respective accounting record by the competent body of the company, the registration of profit reinvestments shall be carried out. (Wording given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

§ 1 Foreign capital and respective profit reinvestments already existing in the Country are also subject to registration, which shall be requested by their owners or those responsible for the companies in which they are applied, within 180 (one hundred and eighty) days from the date of publication of this law. (Renumbered by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

§ 2 The Council of the Superintendency of Currency and Credit shall determine which supporting documents shall be required for the granting of registration of the capital referred to in the preceding paragraph. (Included by Law No. 4,390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 6 The Superintendency of Currency and Credit shall take the necessary measures to ensure that the registration of the data referred to in the preceding articles is kept up to date, and companies shall be obliged to provide the information it requests from them. (Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Sole paragraph. The failure to provide the required regulatory information, or the provision of false, incomplete, incorrect information or information outside the deadlines and conditions provided for in the regulations in force, constitute infractions subject to the fine provided for in art. 58 of this Law. (Included by Provisional Measure No. 2,224, of 4.9.2001)

Art. 7 For the purposes of registration, reinvestment is considered to be the amounts that could have been legally remitted abroad as income and were not, being applied in the very company from which they originate or in another sector of the national economy.

Art. 7 For the purposes of this law, reinvestments are considered to be the income earned by companies established in the Country and attributed to residents and domiciled abroad, and which are reinvested in the same companies from which they originate or in another sector of the national economy. (Wording given by Law No. 4,390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

On remittances of interest, "Royalties" and for technical assistance

Art. 8 Remittances of interest on loans, credits and financings shall be considered as amortization of capital in the part that exceeds the interest rate contained in the respective contract and its respective registration, and SUMOC shall challenge and refuse the part of the rate that exceeds the rate in force in the financial market from which the loan, credit or financing originates, on the date of its execution, for operations of the same type and conditions.

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 9 Natural and legal persons who wish to make transfers abroad as profits, dividends, interest, amortizations, "royalties", technical, scientific, administrative and similar assistance, shall submit to the competent bodies of SUMOC and of the Income Tax Division the contracts and documents considered necessary to justify the remittance.

Sole paragraph. Remittances abroad depend on the registration of the company with SUMOC and proof of payment of the income tax that is due.

Art. 9 Natural and legal persons who wish to make transfers abroad as profits, dividends, interest, amortizations, royalties, technical, scientific, administrative and similar assistance, shall submit to the competent bodies of SUMOC and of the Income Tax Division the contracts and documents considered necessary to justify the remittance. (Wording given by Law No. 4,390, of 29.8.1964)

(See Decree No. 59,496, of 1966)

§ 1 Remittances abroad depend on the registration of the company with SUMOC and proof of payment of the income tax that is due. (Renumbered by Law No. 4,390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

§ 2 In cases of registrations requested and not yet granted, nor denied, the transfers referred to in this article may be made within 1 (one) year from the date of this law, by means of a term of responsibility signed by the interested companies, this period being extendable 3 (three) consecutive times, by act of the President of the Republic, in view of an exposition by the Minister of Finance. (Included by Law No. 4,390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

§ 3 In the case provided for in the preceding paragraph, transfers shall always depend on proof of settlement of the Income Tax. (Included by Law No. 4,390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 9 Remittances abroad as profits, dividends, interest, amortizations, royalties, technical, scientific, administrative and similar assistance depend on proof of payment of the income tax due, if applicable.

(Wording given by Law No. 14,286, of 2021)

§ 1 (Repealed).

(Wording given by Law No. 14,286, of 2021)

§ 2 (Repealed).

(Wording given by Law No. 14,286, of 2021)

§ 3 (Repealed).

(Wording given by Law No. 14,286, of 2021)

Art. 10 The Council of the Superintendency of Currency and Credit may, when it considers necessary, verify the technical, administrative or similar assistance provided to companies established in Brazil, which imply remittance of foreign currency abroad, in order to ascertain the effectiveness of such assistance.

Art. 10 The Superintendency of Currency and Credit may, when it considers necessary, verify the technical, administrative or similar assistance provided to companies established in Brazil, which imply remittances of foreign currency abroad, in order to ascertain the effectiveness of such assistance. (Wording given by Law No. 4,390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 11 The transfer for the payment of royalties due for patents of invention, industrial and commercial trademarks or other titles of the same kind depends on proof, on the part of the interested party, that the respective privileges have not lapsed in the country of origin.

Art. 11 Requests for registration of a contract, for the purpose of financial transfers for the payment of royalties, due for the use of patents, industrial and commercial trademarks or other titles of the same kind, shall be accompanied by a certificate proving the assistance and validity, in Brazil, of the respective privileges granted by the National Department of Industrial Property, as well as a suitable document proving that they have not lapsed in the country of origin. (Amended by Law No. 4,390, of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effective date)

Art. 12. The sums of amounts owed as "royalties" for the exploitation of invention patents, or use of industrial and commercial trademarks and for technical, scientific, administrative or similar assistance, may be deducted, in income tax returns, for the purposes of Art. 37 of Decree No. 47,373 of 07/12/1959, up to the maximum limit of five percent (5%) of the gross revenue of the product manufactured or sold.

(See Provisional Measure No. 1,152, of 2022)

Effective date

(Repealed by Law No. 14,596, of 2023)

Effective date

§ 1 The percentage coefficients allowed for the deductions referred to in this article shall be established and periodically reviewed, by act of the Minister of Finance, considering the types of production or activities grouped together, according to their degree of essentiality.

(Repealed by Law No. 14,596, of 2023)

Effective date

§ 2 The deductions referred to in this article shall be allowed when the expenses for technical, scientific, administrative or similar assistance are proven, provided that such services were effectively rendered, as well as by means of the contract for assignment or license of use of trademarks and invention patents, duly registered in the Country, in accordance with the provisions of the Industrial Property Code.

(Repealed by Law No. 14,596, of 2023)

Effective date

§ 3 The expenses for technical, scientific, administrative and similar assistance may only be deducted in the first five years of operation of the company or of the introduction of a special production process, when their necessity is demonstrated, and this period may be extended for up to five more years, upon authorization by the Council of the Superintendency of the Council of the Superintendency of Currency and Credit.

(Repealed by Law No. 14,596, of 2023)

Effective date

Art. 13. The amounts owed as "royalties" for the exploitation of invention patents and for assistance of invention patents and for technical, scientific, administrative or similar assistance, which do not satisfy the conditions or exceed the limits provided for in the previous article, shall be considered as distributed profits and taxed in accordance with Arts. 43 and 44.

(See Provisional Measure No. 1,152, of 2022)

Effective date

(Repealed by Law No. 14,596, of 2023)

Effective date

Sole paragraph. The total of amounts owed to individuals or legal entities residing or headquartered abroad, as consideration for the use of industrial and commercial trademarks, shall also be taxed in accordance with Arts. 43 and 44.

(Repealed by Law No. 14,596, of 2023)

Effective date

Art. 14. Remittances for payments of "royalties", for the use of invention patents and industrial or commercial trademarks, shall not be permitted between a branch or subsidiary of a company established in Brazil and its parent company headquartered abroad, or when the majority of the capital of the company in Brazil belongs to the recipients of the "royalties" abroad. (See Law 8,383, of 1991)

Sole paragraph. In the cases dealt with in this article, the deduction provided for in art. 12 (twelve) is not permitted.

Art. 15. The practice of customs or exchange fraud resulting from under- or over-invoicing in the export or import of goods and merchandise, once established in a regular administrative proceeding, in which full defense shall be assured to the accused, shall entail the application to those responsible, by the Council of the Superintendency of Currency and Credit, of a fine of up to ten times the value of the under- or over-invoiced amounts, or the penalty of prohibition from exporting and importing for a period of one to five years. (Repealed by Decree-Law No. 37, of 1966)

Art. 16. The Government is authorized to enter into administrative cooperation agreements with foreign countries, aiming at the exchange of information of fiscal and exchange interest, such as remittances of profits and "royalties", payment for technical assistance and similar services, value of imported goods, rentals of cinematographic films, machinery, etc., as well as any other elements that serve as a basis for the incidence of taxes.

Sole paragraph. The Government shall seek to enter into, with the States and Municipalities, tax cooperation agreements or covenants, aiming at a coordinated action of the tax controls exercised by federal, state and municipal offices, in order to achieve greater efficiency in the inspection and collection of any taxes and in the repression of tax evasion and fraud.

Of Assets and Deposits Abroad and Accounting Standards

Art. 17. Individuals and legal entities, domiciled or headquartered in Brazil, are obliged to declare to the Superintendency of Currency and Credit, in the manner to be established by its respective Council, the assets and values they possess abroad, including bank deposits, except, in the case of foreigners, those they possessed upon entering Brazil.

(Repealed by Decree-Law No. 94, of 1966)

Sole paragraph. Within thirty days from the effective date of this law, the Council of the Superintendency of Currency and Credit shall issue instructions on the matter, setting a period of sixty days for the initial declarations.

(Repealed by Decree-Law No. 94, of 1966)

Art. 18. Non-compliance with the provision of the previous article shall entail that the values and bank deposits abroad be considered the product of illicit enrichment and as such subject to criminal proceedings, so that they may be returned or offset against assets or values existing in Brazil, which may be seized by the Public Treasury, to the extent that they are sufficient for such purpose.

(Repealed by Decree-Law No. 94, of 1966)

Art. 19. Individuals or legal entities, domiciled or headquartered in Brazil shall also communicate to the Superintendency of Currency and Credit the acquisitions of new assets and values abroad, indicating the resources used for such purpose.

(Repealed by Decree-Law No. 94, of 1966)

Sole paragraph. Annually, by January 31, they shall also inform SUMOC of the amount of their bank deposits abroad, as of December 31 of the previous year, with justification for the variations occurring therein.

(Revoked by Decree-Law No. 94, of 1966)

Art. 20. By regulatory act, the Executive Branch shall establish chart of accounts and general accounting standards, standardized for homogeneous groups of activities adaptable to the needs and possibilities of companies of various sizes.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Sole paragraph. Once the chart of accounts and the general accounting standards applicable to them are approved by regulatory act, all legal entities in the respective group of activities shall be required to observe them in their accounting, within the periods provided for in regulations, which shall allow for the orderly adaptation of the systems in practice.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Art. 21. In the balance sheets of companies, including corporations, the itemization of the portion of capital and credits belonging to natural persons or legal entities residing, domiciled, or headquartered abroad, registered with the Superintendency of Money and Credit, is mandatory.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Art. 22. The same itemization shall be made in the profit and loss account, to evidence the portion of profits, dividends, interest, and any other income attributed to natural persons or legal entities residing, domiciled, or headquartered abroad whose capital is registered with the Superintendency of Money and Credit.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Exchange Provisions

Art. 23. Exchange operations in the free-rate market shall be carried out through establishments authorized to operate in exchange, with the intervention of an official broker when provided for by law or regulation, both being responsible for the identity of the client, as well as for the correct classification of the information provided by the latter, according to rules established by the Superintendency of Money and Credit.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

§ 1º Operations that do not clearly fit into the specific items of the Classification Code adopted by SUMOC, or are classifiable under residual headings such as "Others" and "Miscellaneous", may only be carried out through Banco do Brasil S.A.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

§ 2º It constitutes an infraction attributable to the banking establishment, the broker, and the client, punishable by a fine equivalent to three times the value of the operation for each of the offenders, the declaration of false identity on the form which, in the number of copies and according to the model determined by the Superintendency of Money and Credit, shall be required in each operation, signed by the client and endorsed by the banking establishment and the broker intervening therein.

§ 2º It constitutes an infraction attributable to the banking establishment, the broker, and the client, punishable by a fine of 50 (fifty) to 300% (three hundred percent) of the value of the operation for each of the offenders, the declaration of false identity on the form which, in the number of copies and according to the model determined by the Central Bank of Brazil, shall be required in each operation, signed by the client and endorsed by the banking establishment and the broker intervening therein. (Text given by Law No. 9,069, of 1995)

§ 2º It constitutes an infraction attributable individually to the banking establishment, the broker, and the client the declaration of false identity on the form which, according to the model determined by the Central Bank of Brazil, shall be required in each operation, signed by the client and endorsed by the banking establishment and the broker intervening therein. (Text given by Provisional Measure No. 784, of 2017)

Effectiveness ended

§ 2º It constitutes an infraction attributable to the banking establishment, the broker, and the client, punishable by a fine of 50 (fifty) to 300% (three hundred percent) of the value of the operation for each of the offenders, the declaration of false identity on the form which, in the number of copies and according to the model determined by the Central Bank of Brazil, shall be required in each operation, signed by the client and endorsed by the banking establishment and the broker intervening therein. (Text given by Law No. 9,069, of 1995)

§ 2 o It constitutes an infraction attributable individually to the banking establishment, the broker, and the client the declaration of false identity on the form which, according to the model determined by the Central Bank of Brazil, shall be required in each operation, signed by the client and endorsed by the banking establishment and the broker intervening therein. (Text given by Law No. 13,506, of 2017)

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

§ 3º It constitutes an infraction, of exclusive responsibility of the client, punishable by a fine equivalent to 100% (one hundred percent) of the value of the operation, the declaration of false information on the form referred to in § 2º.

§ 3º It constitutes an infraction, of exclusive responsibility of the client, punishable by a fine of 5 (five) to 100% (one hundred percent) of the value of the operation, the declaration of false information on the form referred to in § 2º. (Text given by Law No. 9,069, of 1995)

§ 3º It constitutes an infraction, of exclusive responsibility of the client, the declaration of false information on the form referred to in § 2º. (Text given by Provisional Measure No. 784, of 2017)

Effectiveness ended

§ 3º It constitutes an infraction, of exclusive responsibility of the client, punishable by a fine of 5 (five) to 100% (one hundred percent) of the value of the operation, the declaration of false information on the form referred to in § 2º. (Text given by Law No. 9,069, of 1995)

§ 3 o It constitutes an infraction, of exclusive responsibility of the client, the declaration of false information on the form referred to in § 2 o of this article. (Text given by Law No. 13,506, of 2017)

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

§ 4 It constitutes an infraction, attributable to the banking establishment and the broker who intervened in the operation, punishable by a fine equivalent to 5 (five) to 100% (one hundred percent) of the respective value, for each of the offenders, the incorrect classification, within the Superintendence of Currency and Credit, of the information provided by the client in the form referred to in § 2 of this article.

§ 4 It constitutes an infraction individually attributable to the banking establishment and the broker who intervened in the operation, the classification in disagreement with the rules established by the Central Bank of Brazil, of the information provided by the client in the form referred to in § 2. (Text given by Provisional Measure No. 784, of 2017)

Effectiveness terminated

§ 4 It constitutes an infraction, attributable to the banking establishment and the broker who intervened in the operation, punishable by a fine equivalent to 5 (five) to 100% (one hundred percent) of the respective value, for each of the offenders, the incorrect classification, within the Superintendence of Currency and Credit, of the information provided by the client in the form referred to in § 2 of this article.

§ 4 It constitutes an infraction individually attributable to the banking establishment and the broker who intervened in the operation the classification in disagreement with the rules established by the Central Bank of Brazil of the information provided by the client in the form referred to in § 2 of this article. (Text given by Law No. 13,506, of 2017)

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

§ 5 In case of recidivism, the Council of the Superintendence of Currency and Credit may revoke the authorization to operate in exchange for banking establishments that neglect compliance with the provisions of this article and propose to the competent authority the same measure in relation to brokers.

§ 5

(Revoked). (Text given by Law No. 13,506, of 2017)

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

§ 6 The text of this article shall mandatorily appear in the form referred to in § 2.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

§ 7 The use of the form referred to in § 2 of this article is not mandatory in operations of purchase and sale of foreign currency of up to US$ 3,000.00 (three thousand United States dollars), or its equivalent in other currencies. (Included by Law No. 11,371, of 2006)

§ 7 The use of the form referred to in § 2 of this article is not mandatory in operations of purchase and sale of foreign currency of up to the equivalent of US$ 10,000.00 (ten thousand US dollars), and the Executive Power is authorized to increase this value by normative act. (Text given by Law No. 13,017, of 2014)

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Art. 24. It is incumbent upon banking establishments authorized to operate in exchange to transmit to the Superintendence of Currency and Credit, daily, information on the amount of purchase and sale of exchange, with the specification of their purposes, according to the established classification.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Sole paragraph. When the buyers or sellers of exchange are legal entities, the statistical information must correspond exactly to the corresponding accounting entries of these companies.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Art. 25. Banking establishments that fail to inform the exact amount of operations carried out shall be subject to a fine up to the maximum corresponding to 30 (thirty) times the highest annual minimum wage in force in the Country, tripled in case of recidivism.

Sole paragraph. The fine shall be imposed by the General Inspector of Banks, with recourse from his act, without suspensive effect, to the Council of the Superintendence of Currency and Credit within 15 (fifteen) days from the date of notification.

Sole paragraph. The fine shall be imposed by the Superintendence of Currency and Credit, with recourse from its act, without suspensive effect, to the Council of the Superintendence of Currency and Credit, within 15 (fifteen) days from the date of notification. (Text given by Law No. 4,390, of 29.8.1964)

Art. 25. Banking establishments that fail to inform the exact amount of operations carried out shall be subject to a fine, in accordance with art. 58. (Text given by Provisional Measure No. 784, of 2017)

Effectiveness terminated

Art. 25. Banking establishments that fail to inform the exact amount of operations carried out shall be subject to a fine up to the maximum corresponding to 30 (thirty) times the highest annual minimum wage in force in the Country, tripled in case of recidivism.

Sole paragraph. The fine shall be imposed by the Superintendence of Currency and Credit, with recourse from its act, without suspensive effect, to the Council of the Superintendence of Currency and Credit, within 15 (fifteen) days from the date of notification. (Text given by Law No. 4,390, of 29.8.1964)

Art. 25. Banking establishments that fail to inform the exact amount of operations carried out shall be subject to a fine, in accordance with art. 58 of this Law. (Text given by Law No. 13,506, of 2017)

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Sole paragraph. (Revoked). (Text given by Law No. 13,506, of 2017)

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Art. 26. In the case of repeated infractions, the General Inspector of Banks shall request the Executive Director of the Superintendence of Currency and Credit to cancel the authorization to operate in exchange of the banking establishment responsible for them, with the final decision being incumbent upon the Council of the Superintendence of Currency and Credit.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Art. 27. The Council of the Superintendence of Currency and Credit may determine that exchange operations referring to capital movements be carried out, in whole or in part, in a financial exchange market, separate from the export and import market, whenever the exchange situation so recommends.

(Revoked by Law No. 14,286, of 2021)

(Effectiveness)

Art. 28. Whenever a serious imbalance occurs in the balance of payments, or there are serious reasons to foresee the imminence of such a situation, the Council of the Superintendency of Money and Credit may impose restrictions, for a limited period, on the importation and on the remittances of income from foreign capital and, for this purpose, grant to the Bank of Brazil a total or partial monopoly of exchange operations.

§ 1º In the case provided for in this article, remittances as a return of risk capital are prohibited, and those of its profits are limited to 10% (ten percent) of the capital registered under the terms of arts. 3º and 4º.

§ 2º The income that exceeds 10% (ten percent) of the capital must be reported to SUMOC, which, in the event that the restriction referred to in this article extends for more than one fiscal year, may authorize the remittance, in the following fiscal year, of the amounts relating to the excess, when the profits referred to therein do not reach that limit.

§ 3º In the same cases of this article, the Council of the Superintendency of Money and Credit may limit the remittance of amounts as payments for "royalties" and technical, administrative or similar assistance up to the maximum cumulative annual limit of 5% (five percent) of the company's gross revenue.

§ 4º Also in the cases of this article, the Council of SUMOC is authorized to issue instructions, limiting exchange expenses with "International Travel".

§ 5º There shall be no restrictions, however, for the remittances of interest and amortization quotas, contained in duly registered loan contracts.

Art. 28. Whenever a serious imbalance occurs in the balance of payments or there are serious reasons to foresee the imminence of such a situation, the Council of the Superintendency of Money and Credit may impose restrictions, for a limited period, on the importation and on the remittances of income from foreign capital and for this purpose grant to the Bank of Brazil a total or partial monopoly of exchange operations. (Text given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

§ 1º In the case provided for in this article, remittances as a return of capital are prohibited, and the remittance of its profits is limited to 10% (ten percent) per year, on the capital and reinvestments registered in the currency of the country of origin under the terms of articles 3º and 4º of this law. (Text given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

§ 2º The income that exceeds the percentage set by the Council of the Superintendency of Money and Credit, in accordance with the previous paragraph, must be reported to this Superintendency, which, in the event that the restriction referred to in this article extends for more than one fiscal year, may authorize the remittance, in the following fiscal year, of the amounts relating to the excess, when the profits earned therein do not reach that limit. (Text given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

§ 3º In the same cases of this article, the Council of the Superintendency of Money and Credit may limit the remittance of amounts as payment for royalties and technical, administrative or similar assistance up to the maximum cumulative annual limit of 5% (five percent) of the company's gross revenue. (Text given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

§ 4º Also in the cases of this article, the Council of SUMOC is authorized to issue instructions, limiting exchange expenses with "International Travel. (Text given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

§ 5º There shall be no restrictions, however, for the remittances of interest and amortization quotas, contained in duly registered loan contracts. (Text given by Law No. 4.390, of 29.8.1964)

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Art. 29. Whenever it becomes advisable to economize the use of exchange reserves, the Executive Power is authorized to temporarily require, by instruction of the Council of the Superintendency of Money and Credit, a financial charge, of a strictly monetary nature, which shall fall on financial transfers, up to a maximum of 10% (ten percent) on the value of imported products and up to 50% (fifty percent) on the value of any financial transfer, including for expenses with "International Travel. Regulation

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Sole paragraph. The maximum period of the imposing faculty dealt with in this article shall be 150 (one hundred and fifty) days, consecutive or not, during the year.

(Repealed by Law No. 4.390, of 29.8.1964)

Art. 30. The amounts collected through the financial charge provided for in the previous article shall constitute a monetary reserve in cruzeiros, maintained at the Superintendency of Money and Credit, in its own cash, and shall be used, when deemed opportune, exclusively for the purchase of gold and foreign exchange, to reinforce exchange reserves and availabilities.

(Repealed by Law No. 14.286, of 2021)

(Effectiveness)

Art. 31. Annual remittances of profits abroad may not exceed 10% of the value of registered investments.

(Repealed by Law No. 4.390, of 29.8.1964)

Art. 32. Remittances of profits that exceed the limit established in the previous article shall be considered a return of capital and deducted from the corresponding registration, for the purpose of future remittances of profits abroad.

(Repealed by Law No. 4.390, of 29.8.1964)

Sole paragraph. The annual portion of return of foreign capital may not exceed 12% (twenty percent) of the registered capital.

(Repealed by Law No. 4.390, of 29.8.1964)

Art. 33. Profits exceeding the limit established in art. 31 of this law shall be registered separately, as supplementary capital, and shall not give the right to remittance of future profits.

(Repealed by Law No. 4.390, of 29.8.1964)

Art. 34. Under any circumstance and whatever the exchange regime in force, purchases of exchange for remittance of profits, interest, "royalties", technical assistance, return of capital may not be granted conditions more favorable than those applicable to remittances for payment of imports of the general category dealt with in Law No. 3244 of 14/08/1957.

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Art. 35. The appointment of the holders of the bodies that make up the Council of the Superintendency of Money and Credit shall depend on prior approval by the Federal Senate, except for that of Ministers of State.

(Repealed by Law No. 14,286 of 2021) (Effectiveness)

Art. 36. The Members of the Council of the Superintendency of Money and Credit are required to file a declaration of their own assets and income and those of their wives and dependents, by 30 (thirty) April of each year, and these documents must be examined and filed with the Federal Court of Accounts, which shall notify the Federal Senate of the fact.

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Sole paragraph. The employees of the Superintendency of Money and Credit who have responsibility and regulatory duties in the work relating to the registration of foreign capital or its inspection under the terms of this Law are likewise required to file the declaration of income provided for in this article.

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Provisions concerning credit

Art. 37. The National Treasury and the official public credit entities of the Union and the States, including mixed-capital companies controlled by them, may only guarantee loans, credits or financing obtained abroad, by companies whose majority of voting capital belongs to persons not resident in the Country, upon authorization by decree of the Executive Branch. (Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Art. 38. Companies with a majority of foreign capital, or branches of companies headquartered abroad, shall not have access to credit from the entities and establishments mentioned in the previous article until the proven start of their operations, except for projects considered of high interest to the national economy, upon special authorization from the Council of Ministers.

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Art. 39. The entities and credit establishments referred to in article 37 may only grant loans, credits or financing for new investments to be made in the fixed assets of a company whose majority of voting capital belongs to persons not resident in the Country, when they are applied in sectors of activity and economic regions of high national interest, defined and listed in a decree of the Executive Branch, after hearing the National Economic Council. (See Decree No. 2,233 of 1997)

(See Law No. 5,331 of 1967)

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Sole paragraph - Also the application of resources from public investment funds, created by law, shall comply with the rule established in this article.

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Art. 40. Financing and investment companies may only place on the national capital market shares and securities issued by companies controlled by foreign capital or subordinate to companies headquartered abroad, which have ensured the right to vote.

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Tax Provisions

Art. 41. The following income is subject to withholding income tax, under the terms of this Law:

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

a) dividends from bearer shares and any bonuses attributed to them;

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

b) interest and any other income and proceeds from bearer securities, called "Beneficiary Parts" or "Founder's Parts";

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

c) profits, dividends and any other benefits and interest from registered shares or any registered securities of the capital of legal entities, received by natural persons or legal entities resident, domiciled or headquartered abroad, or by branches or subsidiaries of foreign companies.

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

Art. 42. Legal entities that have a predominance of foreign capital or are branches or subsidiaries of companies headquartered abroad are subject to the rules and rates of income tax established in the legislation of this tax.

Art. 43. Profits and dividends attributed to natural persons or legal entities resident or headquartered abroad are subject to payment at source of income tax at the rates in force for dividends due on bearer shares.

(See Law No. 4,154 of 1962)

Art. 43. The amount of net profits and dividends effectively remitted to natural persons and legal entities, resident or headquartered abroad, is subject to a supplementary income tax, whenever the average of remittances in a three-year period, from the year 1963, exceeds 12% (twelve percent) of the capital and reinvestments registered under the terms of articles 3 and 4 of this Law. (Text given by Law No. 4,390 of 29.8.1964)

(See Decree-Law No. 1,401 of 1975)

(See Decree-Law No. 1,986 of 1982)

Art. 43. The amount of net profits and dividends relating to investments in foreign currency, distributed to natural persons and legal entities, resident or headquartered abroad, is subject to a supplementary income tax, whenever the average of distributions in a three-year period, ended from 1984, exceeds 12% (twelve percent) of the capital and reinvestments registered under the terms of articles 3 and 4 of this Law.

(Effectiveness)

(Text given by Decree-Law No. 2,073 of 1983)

(Repealed by Law No. 14,286 of 2021)

(Effectiveness)

§ 1 The supplementary tax dealt with in this article shall be collected in accordance with the following table: (Included by Law No. 4,390 of 29.8.1964)

(Repealed by Law No. 14,286, of 2021)

(Effective)

between 12% and 15% of profits on capital and reinvestments

• 40% (forty percent);

between 15% and 25% of profits

• 50% (fifty percent);

above 25% of profits

• 60% (sixty percent).

§ 2 This supplementary tax shall be withheld and collected at source on the occasion of each remittance that exceeds the three-year average referred to in this article. (Included by Law No. 4,390, of 29.8.1964)

2 The provisions of this article do not apply to dividends and profits reinvested in the Country under the terms of article 7 of this Law.

(Effective)

(Text given by Decree-Law No. 2,073, of 1983)

(Repealed by Law No. 14,286, of 2021)

(Effective)

§ 3 The supplementary tax shall be collected by the paying source and debited to the beneficiary for withholding on the occasion of subsequent distributions.

(Effective)

(Included by Decree-Law No. 2,073, of 1983)

(Repealed by Law No. 14,286, of 2021)

(Effective)

Art. 44. The aforementioned tax shall be collected with a surcharge of 20% (twenty percent) in the case of companies engaged in economic activities of lesser interest to the national economy, taking into account including their location, defined by decree of the Executive Branch, after hearing the National Economic Council and the Council of the Superintendency of Money and Credit. (Repealed by Law No. 8,383, of 1991)

Art. 45. Income arising from the exploitation of cinematographic films, except those of non-importer exhibitors, shall be 40% (forty percent), but the taxpayer shall have the right to opt for deposit in the Bank of Brazil, in a special account, of 40% (forty percent) of the tax due, and may apply this amount, upon authorization of the Executive Group of the Cinematographic Industry (GEICINE), created by Decree No. 50278, of 17/02/1961, in the production of films in the Country, under the terms of Decree No. 51106, of 01/08/1961. (Regulation)

Art. 45. Income arising from the exploitation of cinematographic films, except those of non-importer exhibitors, shall be subject to withholding of the tax at the rate of 40%, but the taxpayer is obliged to make a deposit in the Bank of Brazil S.A. in a special account, of 40% of the tax due, to the credit of the Brazilian Film Company S.A. - EMBRAFILME, to be applied as provided in the statute and in the authorizing decree creating the said Company. (Text given by Decree-Law No. 862, of 1966)

(See Decree-Law No. 1,429, of 1975)

(Repealed by Law No. 8,685, of 1993)

Art. 46. Profits arising from the sale of immovable properties, including the assignment of rights, when the owner is a natural person or legal entity resident or headquartered abroad, are subject to tax at the rates provided by art. 43.

(Repealed by Law No. 14,286, of 2021)

(Effective)

Art. 47. The criteria established for the importation of used machinery and equipment shall be the same, both for foreign investors and companies and for domestic ones.

Art. 48. Once an importation of used machinery and equipment is authorized, it shall enjoy an exchange regime identical to that in force for the importation of new machinery and equipment.

Art. 49. The Customs Policy Council shall have the power to reduce or increase, up to 30% (thirty percent), the tax rates applicable to machinery and equipment, taking into account the peculiarities of the regions to which they are destined, the industrial concentration in which they will be employed, and the degree of utilization of the machinery and equipment before the importation is effected.

Sole Paragraph - When the machinery and equipment are transferred from the region to which they were initially destined, those responsible shall pay to the treasury the amount corresponding to the reduction of the tax they enjoyed when imported, whenever removed to zones where the reduction would not be granted.

Other Provisions

Art. 50. Foreign banks authorized to operate in Brazil shall be subject to the same prohibitions or equivalent restrictions as those imposed by the legislation in force in the places where their head offices are located on Brazilian banks wishing to establish themselves therein.

(Repealed by Law No. 14,286, of 2021)

(Effective)

Sole Paragraph. The Council of the Superintendency of Money and Credit shall issue the necessary instructions for the provisions of this article to be complied with, within two years, in relation to foreign banks already operating in the Country.

(Repealed by Law No. 14,286, of 2021)

(Effective)

Art. 51. Foreign banks whose head offices are located in places where legislation imposes restrictions on the operation of Brazilian banks are prohibited from acquiring more than 30% (thirty percent) of the voting shares of national banks. (Repealed by Law No. 14,286, of 2021)

(Effective)

Art. 52. In the execution of a general planning program, after hearing the National Economic Council, the Council of Ministers shall establish a classification of economic activities according to their degree of interest to the national economy. (Repealed by Law No. 14,286, of 2021)

(Effective)

Sole Paragraph. This classification and its eventual alterations shall be promulgated by decree and shall remain in force for periods of not less than three years.

(Repealed by Law No. 14,286, of 2021)

(Effective)

Art. 53. The Council of Ministers may establish, by decree, after hearing the National Economic Council:

(Repealed by Law No. 14,286, of 2021)

(Effective)

I - that the investment of foreign capital, in certain activities, be made in observance of a scale of priority, for the benefit of less developed regions of the country;

(Repealed by Law No. 14,286, of 2021)

(Effective)

II - that the capital thus invested be exempt, to a greater or lesser degree, from the restrictions provided in article 28;

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

III - that identical treatment be applied to capital invested in activities considered of greater interest to the national economy.

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 54. The Council of Ministers is authorized to promote understandings and agreements with the nations that are members of the Latin American Free Trade Association, aimed at their adoption of uniform legislation regarding the treatment to be accorded to foreign capital.

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 55. SUMOC shall periodically conduct, in collaboration with the Brazilian Institute of Geography and Statistics, the census of foreign capital invested in the Country.

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 56. The censuses shall be conducted on the dates of the General Censuses of Brazil, recording the situation of companies and foreign capital as of December 31 of the previous year.

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 57. SUMOC shall be responsible for preparing the plan and the forms of the census the plan and the forms of the census referred to in the previous articles, in such a way as to allow a complete analysis of the situation, movements and results of foreign capital.

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Sole paragraph. Based on the censuses carried out, SUMOC shall prepare a report containing a broad and detailed exposition to the Council of Ministers and to the National Congress.

(Repealed by Law No. 14,286, of 2021)

(Effectiveness)

Art. 58. Infractions of this law, except for the specific penalties set forth in its text, shall be subject to fines ranging from 20 (twenty) to 50 (fifty) times the highest minimum wage in force in the Country, to be applied by the Superintendency of Money and Credit, in the manner prescribed in regulations or Instructions issued in that regard.

Art. 58. Infractions of this Law, except for the specific penalties set forth in its text, shall be subject to fines of up to R$ 100,000.00 (one hundred thousand reais), to be applied by the Central Bank of Brazil, in the manner prescribed in regulations to be issued by the National Monetary Council. (Wording given by Law No. 9,069, of 1995)

(See Provisional Measure No. 2,224, of 2001)

Art. 58. To infractions of this Law and of the regulatory norms, the provisions of art. 39 of Provisional Measure No. 784, of June 7, 2017, shall apply. (Wording given by Provisional Measure No. 784, of 2017)

Effectiveness ended

Art. 58. Infractions of this Law, except for the specific penalties set forth in its text, shall be subject to fines of up to R$ 100,000.00 (one hundred thousand reais), to be applied by the Central Bank of Brazil, in the manner prescribed in regulations to be issued by the National Monetary Council. (Wording given by Law No. 9,069, of 1995)

(See Provisional Measure No. 2,224, of 2001)

(Repealed by Law No. 13,506, of 2017)

Art. 59. This law shall enter into force on the date of its publication, and the provisions to the contrary are repealed.

Brasília, September 3, 1962; 141st of Independence and 74th of the Republic.

AURO MOURA ANDRADE President of the Federal Senate

This text does not replace the one published in the DOU of 27.9.1962 and

rectified on 28.9.1962

*