Foreign investments in Brazil are subject to registration with the Central Bank of Brazil (BACEN), and the information the investor provides becomes part of the Information System of the Central Bank (SISBACEN). This registry is a key requirement, without which the investor cannot remit the profits obtained in his operations in Brazil abroad, repatriate the capital or reinvest the profits.
Therefore, there are no restrictions to the distribution or remittance of dividends abroad. The remittances have to be made by banks authorized by the Central Bank, in conformity with the general rules established by the National Monetary Council.
Remittances that exceed the amount declared by the investor will be considered as capital gains, and, thus, will be subject to 15% taxation by way of income tax and also subject to the approval of the Central Bank. If that happens, the BACEN may examine, if it deems necessary, the net worth of the investor company through the analysis of its balance sheet. If the result of this analysis proves that the net worth of the company is negative, and the BACEN understands that there was a dilution of investment, it may deny authorization to the capital repatriation at an amount proportional to the negative result found in its analysis.
According to the modifications brought by Law n. 4.390/1964, the amounts invested in Brazil may be repatriated to the country of origin at any time without any restrictions (nor quantitative nor qualitative) and with no need of previous authorization by the BACEN. The only established condition is that the amount remitted cannot exceed the value declared by the investor with the BACEN.