Brazilian companies holding direct foreign investments registered with the Central Bank of Brazil (BACEN) must file the Economic-Financial Statement with respect to the base year 2017, irrespective of the amount of such investments, under the Electronic Declaratory Registration for Direct Foreign Investment (RDE-IED) option, available online at BACEN’s website by March 31, 2018.
According to the new rules, Brazilian companies receiving foreign capital with net equity below BRL 250,000,000.00 must update the information on the following items with respect to the base date of December 31st of the prior year on an annual basis, under the RDE-IED option, by March 31st of the following year:
a) Net equity and paid-in capital of the receiving company;
b) Amount of capital paid in by each registered foreign investor, describing the legal base of each registered information.
Though such amendments were made to the rule, the thirty-day term from the occurrence of the relevant corporate event (merger, consolidation or spin-off of companies in Brazil) remains to update the RDE-IED relative to changes to the foreign investor’s interest in the receiving companies.
In turn, Brazilian companies receiving direct foreign investments with assets or net equity equal to or in excess of BRL 250,000,000.00 must file four (4) financial-economic statements per year, in compliance with the following schedule:
a) Relative to the base date of March 31st, the statement must be filed by June 30th;
b) Relative to the base date of June 30th, the statement must be filed by September 30th;
c) Relative to the base date of September 30th, the statement must be filed by December 31st;
d) Relative to the base date of December 31st, the statement must be filed by March 31st of the subsequent year.
Note: BACEN determines criteria and sums for the application of fines in the event of the provision of inaccurate, incomplete or delayed information.