Effective as of 1 January 2026, Brazil has updated its UBO reporting framework, introducing a new digital filing tool – the e-BEF (Digital Beneficial Ownership Form) – to streamline compliance with the Brazilian Federal Revenue Service reporting requirements. 

Since 2016, both Brazilian and foreign entities have been required to disclose their ultimate beneficial owners. Non-compliance may result in the suspension of the entity’s tax identification number (CNPJ), effectively blocking financial operations. 

Key Regulatory Updates 

• Expanded Reporting Scope: The reporting obligation now covers a broader range of entities, including all civil and commercial companies, associations, cooperatives, and foundations (even those with suspended or inactive status). It also explicitly includes investment funds (including tiered structures), financial institutions, fund administrators, and trusts operating in Brazil or maintaining assets or rights requiring a CNPJ. 

• Identification Criteria: Entities must identify the natural person who ultimately owns, controls, or exercises significant influence over the company, provided they hold more than 25% of the entity’s equity or voting rights. 

• Deadlines: Generally, disclosures must be filed within 30 days of CNPJ registration, a change in beneficial ownership, or the date a previously exempt entity becomes subject to the requirement. 

• Specific Transition Periods: 

• Entities with foreign legal shareholders: Subject to the new rules as of 1 January 2026, with a compliance deadline of 31 December 2026.  

• Entities with individual shareholders only: Reporting will be implemented in a phased approach. 

Phased rollout for entities with individual shareholders only 

• Phase 1 – by 1 January 2027: 

• Simple companies and limited liability companies with annual gross revenue exceeding BRL 78 million in the year preceding the filing. 

• Foreign entities seeking to invest in Brazil’s financial and capital markets. 

• Nonprofit organizations receiving public funds, excluding Autonomous Social Service (SSA) entities. 

• Phase 2 – by 1 January 2028: 

• Simple companies and limited liability companies with annual gross revenue exceeding BRL 4.8 million in the year preceding the filing. 

• Investment funds established to receive assets from foreign supplemental pension or personal insurance plans. 

• Pension entities, pension funds, and similar institutions, whether domiciled in Brazil or abroad. 

Penalties 

Failure to comply may result in the suspension of the entity’s tax identification number (CNPJ), effectively blocking financial operations. Late filings may also be subject to monthly fines ranging from BRL 500 to BRL 1,500. 

Practical Impact 

These updates represent a significant step toward enhanced transparency and governance for entities operating in Brazil. We recommend that organizations review their internal processes and prepare to comply with the e-BEF requirements to ensure compliance and mitigate legal and reputational risks. 

Glossary: 

Beneficial Ownership (UBO) – Who Ultimately Owns Or Controls An Entity 

UBO Reporting Framework – The Rules Governing Beneficial Ownership 

Disclosures 

E-BEF (Digital Beneficial Ownership Form) – The Mandatory Digital Form Used To 

Report UBO Information 

Brazilian Federal Revenue Service – Brazil’s Federal Tax Authority 

Tax Identification Number (CNPJ) – Brazil’s Federal Registration Number For Legal 

Entities 

Suspension Of The CNPJ – Administrative Status That Can Prevent Normal 

Operations 

Tiered Structures – Multi-Layer Fund/Entity Chains 

Trust – A Common-Law Fiduciary Arrangement That May Trigger Reporting In Brazil 

Equity Or Voting Rights – Ownership Interests Or Voting Power 

Phased Rollout – Implementation In Stages With Di􀆯erent Deadlines By Category 

Annual Gross Revenue – Gross Sales/Revenue Over The Year 

Autonomous Social Service (SSA) – A Specific Type Of Quasi-Public Entity 

Category In Brazil 

Supplemental Pension Benefit Plans – Occupational/Private Pension Plans 

Personal Insurance Plans – Individual Life/Insurance Plans 

Monthly Fines – Recurring Penalties Assessed Per Month Of Delay