Based on Circular No. 3,689, of December 16, 2013, from the Central Bank of Brazil – BACEN, Brazilian companies with foreign capital have until March 31, 2021, to issue a mandatory remittance in the Electronic Declaration of Foreign Direct Investment Registration system (RDE-IED), either through the presentation of an Economic-Financial Statement (DEF) or a Corporate Structure for the periodic annual update, being:
I. Single Declaration: companies that have net equity and LOWER assets of R$250 million, must have their balance and accounting information updated at Sisbacen’s RDE-IED system until March 31, 2021, referring to the date basis of December 31, 2020.
II. Quarterly Statement: companies that have equity and assets equal to or greater than R$ 250 million, must submit four (4) Economic and Financial Statements per year, observing the set calendar determined by Circular 3.822/17:
a. until March 31 of the subsequent calendar year, referring to the date basis of December 31, 2020.
b. until June 30, referring to the date basis of March 31, 2021.
c. until September 30, referring to the date basis of June 30, 2021.
d. until December 31, referring to the date basis of September 30, 2021.
We emphasize that the issuance out of the terms and conditions provided for in the current RDE-IED regulation, subjects those responsible to suspension in the RDE-IED system, which prevents the contracting of foreign exchange with a nature of the direct foreign investment, and an administrative sanctioning proceed initiated by the Central Bank of Brazil, as provided for in article 36 of Law No. 13,506, of November 13, 2017, with fines imposed in accordance with article 60 of BCB Circular No. 3,857, of November 14, 2017.
Lotti & Araújo Law Firm is available to assist its clients and business partners in the statements mentioned above.