The RDE-IED (Electronic Declaratory Register – Foreign Direct Investment) registers the capital that enters in Brazil. These records are performed in Brazil's Central Bank Information System (SISBACEN), and should be always updated.
The Central Bank Information System (SISBACEN) is divided into modules and RDE-IED is the one where operations involving foreign capital in Brazil are registered. Every Brazilian company with a foreign investor as a partner, whether an individual or a legal entity, has one RDE-IED code, which links it to its foreign shareholder.
The Central Bank of Brazil (BACEN) has recently updated this module of SISBACEN, calling it the "new RDE-IED." Companies with access to the old SISBACEN system were automatically registered in the new system on 30 January 2017 (any inconsistencies are resolved on a case-by-case basis, according to the Central Bank. To access the new system, companies can use their browsers, and it is not necessary to download the PASCS10 program.
One of the statements delivered through this "new RDE-IED" module shall disclose accounting information on company's net equity, paid capital and paid capital of foreign investors of Brazilian companies whose corporate structure is comprised of foreign companies/individuals. The BACEN used to issue an annual statement with the deadline for updating this information, and companies that did not meet the deadline could have been fined. One of the main changes related to the statement is the date. Previously it varied from year to year, now is fixed.
What else is new?
With the improvements made to the RDE-IED, the rules are now clear and should result in more effective control. These amendments were provided in resolution 4533 of November 24 2016, which addressed the responsibility of statements made in the system. Circular 3814 of December 7 2016 provides the changes in the system and regulates the financial statement issue. And circular 3822 of January 20 2017 alters the deadlines established in the previous circular.
The new RDE-IED simplifies registers and makes business planning easier. For example, companies with assets or net equity below R$ 250 million now have to submit their statements by 31 March.
Larger companies are required to submit four complete statements, called "Declaração Econômico Financeira", at the end of each quarter of the fiscal year, being the first at March 31st, according to Circular 3822. This statement is much more complex than the latter.
In both case companies are subject to fines of up to R$ 250,000.00 if they don´t meet the deadline.
As mentioned above, companies with access to the old SISBACEN system are automatically registered in the new system, so no new registration is required.
Want simplicity? Talk to us
It looks complicated, and it certainly is. For this reason TMF Brazil offers the registration of foreign investments and the development of economic/financial statements of companies. We are focused on helping you make sure that all registrations with the Central Bank are effectively performed, so your company can concentrate its efforts on what really matters: your business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.