Economic Financial Form (DEF) | In the Year of 2018 (BACEN)
According to BACEN rules, Brazilian companies holding direct foreign investments registered with BACEN must file the Economic Financial Form (DEF) on the 2018 base year. An other option would be to update the relevant NAV and paid-in capital of national companies receiving foreign funds, as well of any capital paid-in by every foreign investor holding interest in the capital of Brazilian companies.
The term to file the form expires on March 31, 2019, and the information criteria varies according to the amount of the investment made. The form must be filed on a quarterly basis by companies with investments exceeding BRL250,000,000.00, and the aforementioned date is applicable to the 4Q18 information. In turn, companies with investments lower than such amount must include the information on the 2018 base year in the annual form.
It is worth mentioning that the thirty-day term from the relevant corporate event (merger, consolidation or spinoff of companies in Brazil) applies to update the information on any change to the foreign investor’s stake in the investees.
Any omission or delay in the provision of the information or whenever any inaccurate or incomplete information is filed is subject to the BACEN-applied penalty of up to BRL250,000.00.
Please feel free to contact us should you need further clarification.