Pursuant to Law No. 14,286 of December 29, 2021, the Brazilian Central Bank ("BCB") has published several resolutions regulating the foreign exchange market, including Resolutions No. 278 and 281 of December 31, 2022.
One of the changes introduced by the new regulation is the replacement of the Economic-Financial Statement (DEF) by the Periodic Statement (Quarterly, Annual or Quinquennial). The current deadlines and minimum amounts for submitting Financial and Economic Statements, that are mandatory for Brazilian entities with direct equity interest of non-residents in their capital stock, are summarized below:
|Total Asset Value||Equal to or higher than BRL 300 million.||Equal to or higher than BRL 100 million.||Equal to or higher than BRL 100 thousand.|
|Submission Deadlines||Until March 31: base-date December 31
Until June 30: base-date March 31
Until September 30: base-date June 30
Until December 31: date-base September 30
|Until March 31: base-date December 31 of the previous year||Until March 31: base-date December 31 of year ending in 0 or 5 (2025, 2030, 2035 etc.)|
- The Quarterly Statement, including the one which base date is December 31, 2022, must be submitted through the SCE-IED system (new RDE-IED), in the field of the former "Economic-Financial Statement".
- The Annual Statement, exceptionally referred to the base date of December 31, 2022, must be submitted through the Foreign Capital Census system, between July 1st and August 15th, 2023.
- In the years in which the Quinquennial Statement is submitted, the Annual Statement will not need to be submitted.
- Companies with total assets in amount lower than the amounts described above on the respective base dates, will not be required to submit any report to the BCB.
- As of November 2023, all statements will be submitted through a single system (not announced yet).
The submission of false, inaccurate, incomplete, or delayed information or the actual failure to submit the annual or quarterly statement subjects the Brazilian entity to the imposition of fines by the BCB, according to the applicable rules.
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.