Every company receiving foreign direct investment is required to annually declare in the Electronic Register of Foreign Direct Investment (RDE-IED) held by the Central Bank of Brazil the information regarding the amounts of shareholders’ equity, whole paid-in corporate capital and of the capital paid by each foreign investor on the base date of December 31 of the previous year. The deadline for submitting such statements ends on March 31.
In addition, companies receiving foreign investment with assets or equity equal to or greater than R$250 million must also submit four economic and financial statements per year, according to the following dates:
- 06/30 – referring to the period between 01/01 and 03/31;
- 09/30 – referring to the period between 04/01 and 06/30;
- 12/31 – referring to the period between 07/01 and 09/30; and
- 03/31 – referring to the period between 10/01 and 12/31
It is also important to mention that whenever there is an event that changes the equity interest of the foreign investor, the invested company will be obliged to update the information in the RDE-IED within 30 days from the aforementioned event.Pursuant to Law 13,506/2017, the omission or delay in the declaration, or the provision of incorrect or false information may give rise to the application of sanctions, such as the blocking of foreign exchange operations, in addition to fines by the Central Bank of Brazil.
For more information please contact:
Luiz Donelli – luiz.donelli@dsalaw.com.br
Eduardo Abreu Sodré – eduardo.sodre@dsalaw.com.br
Suzana C. Cencin Castelnau – suzana.castelnau@dsalaw.com.br
Tomas Arruda – tomas.arruda@dsalaw.com.br
