Submission of Information of December 2023 to the Central Bank of Brazil – Mandatory DEF and Annual Update for recipients of foreign capital
All companies that are recipients of foreign capital must file, up to March 31st, 2024, a Capitalization Table Update, with information of their net equity and paid-in capital, as well as the capital invested by each of their foreign investors on December 31st, 2023.
For companies recipient of foreign direct investment with total assets or net equity equal or superior to R$ 300.000.000,00 (three hundred million reais), it is mandatory to file an Economical-Financial Declaration (DEF in the Portuguese acronym) that will contain, apart from the information above, more detailed accounting information of the company.
QUARTERLY PERIODIC DECLARATION – SCE IED
Who should declare?
- Must be provided by the recipient of foreign direct investment who, on the reference quarterly reporting date, has total assets valued at or above R$ 300.000.000,00 (three hundred million Brazilian reais).
Deadline and Reference Date:- Until March 31st, referring to the reference date of December 31st, 2023 (transitional provision);
- Until June 30th, referring to the baseline of March 31st;
- Until September 30th, referring to the baseline of June 30th;
- Until December 31st, referring to the baseline of September 30th.
- Note: As a transitional provision, recipients of FDI with total assets valued at or above R$ 300.000.000,00 (three hundred million Brazilian reais) must provide quarterly declaration through the Economic-Financial Declaration (DEF) functionality.
The failure to comply with these filings subjects the management to the suspension in the RDE-IED system, which might impede the liquidation of ForEx transactions, and could also entail the application of fines at the end of an administrative sanctions procedure with the the Central Bank of Brazil.
Legal reference: Circular 3.689/2013
