What is an ultimate beneficiary?

The term “ultimate beneficiary” refers to the natural person who ultimately owns, controls, or benefits from a legal entity or the natural person in whose name a transaction is conducted (Article 53 of the IN RFB No. 2119 of 06/12/2023).

Identifying the ultimate beneficiary is an important measure to prevent money laundering, tax evasion, and other illegal activities.

What are the obligations and requirements related to the final beneficiary??

‍In the context of the Federal Revenue Service in Brazil, the identification of the final beneficiary is part of compliance and transparency measures. Some obligations and requirements related to the ultimate beneficiary may include:

National Register of Legal Entities (CNPJ)
Companies and organizations are required to provide accurate information about their final beneficiaries during the registration and maintenance process of the CNPJ.

Final Beneficiary Declaration (DBF)
In some cases, the Internal Revenue Service may require the filing of a Final Beneficiary Declaration, in which detailed information is provided about the individuals who are the entity's final beneficiaries.

Documentation and Proof of Identity
It is necessary to provide documents and information that prove the identity of the final beneficiaries, including copies of personal documents, such as ID, social security number, proof of address, among others.

Penalties
Entities domiciled in Brazil or abroad that do not comply with the provisions of IN RFB n. 2119 of 06/12/2023 or do not submit supporting documentation may have their registration with the CNPJ suspended and be prevented from transacting with banking establishments, including the movement of current accounts, the making of financial investments and the obtaining of loans.

Consult UnionPar to streamline your daily life

UnionPar has a specialized team to ensure that all steps are followed correctly to comply with the Internal Revenue Legislation regarding final beneficiaries.

Learn about the services by clicking here.