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Notícias

22 | Mar

DEADLINE FOR COMPANIES TO SUBMIT INFORMATION WITH THE CENTRAL BANK SYSTEM IS MARCH 31

Companies that have foreign capital of any value must have their information updated and registered with the Brazilian Central Bank’ system to avoid penalties.

DEADLINE FOR COMPANIES TO SUBMIT INFORMATION WITH THE CENTRAL BANK SYSTEM IS MARCH 31

March 31, 2021 (Wednesday) is the deadline for the Brazilian companies that have paid-in foreign capital[1] to submit their Economic and Financial Declaration (“DEF”) or Corporate Structure with the Brazilian Central Bank system called Electronic Declaratory Registration of Foreign Direct Investment (“RDE-IED”).

DEF’s registration is mandatory for Brazilian companies that have received foreign direct investment with total assets or net equity equal to or greater than R$ 250,000,000.00 (two hundred and fifty million Brazilian reais), considering financial statements ending December 31, 2020.

DEF information comprises profit or loss on the fiscal years, as well as revenue and cost due to exchange variation, and impairment revenue or costs on a quarterly basis[2].

For companies with total assets and net equity below R$ 250,000,000.00 (two hundred and fifty million Brazilian reais), it is necessary to file only their updated Corporate Structure information before the RDE-IED.

Companies filing incomplete, incorrect, out of date information, and with no supporting documents are subject to get suspended on RDE-IED, which prevents them from receiving new foreign investments. In addition, such non-compliance companies may be subject to administrative proceedings and penalties reaching up to R$ 250,000.00 (two hundred and fifty thousand Brazilian reais).

The corporate team of Mello Pimentel Advocacia is available to provide further clarification on this topic, as well as to assist its clients in the registration process at the RDE-IED.

 

By Eduarda Cardoso. E-mail: empresarial@mellopimentel.com.br.

 

[1] Considering financial statements ending December 31, 2020.

[2] Such information must be declared based on the accumulated value in each civil quarters: March 31 (1st quarter), June 30 (2nd quarter), September 30 (3rd quarter) and December 31 (4th quarter)