Economic-Financial Form (DEF) 2019
According to BACEN rules, Brazilian companies holding direct foreign investments registered with BACEN must file the Economic-Financial Form (DEF) on the 2019 base year, or 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 31st, 2020, 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 BRL 250,000,000.00. Furthermore, the aforementioned date is applicable to the 4Q19 information. In turn, companies with investments lower than such amount must include the information on the 2019 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.
Omission or delay in the information provision or even any inaccurate or incomplete information is subject to the BACEN-applied penalty of up to BRL 250,000.00.
Please feel free to contact us should you need further clarification.