According to the rules of the Brazilian Central Bank (BACEN), companies with foreign direct investment (“IED”) shall submit quarterly, annual, and five-yearly periodic declarations according to the amount and criteria established by applicable legislation.
1. BACEN Quarterly Declaration
The purpose of the Quarterly declaration is to identify the non-resident investors, as well as to provide accounting information about company which receives the investment.
Obligation and Deadlines:
This Declaration shall be submitted by companies which receive foreign direct investment and on the reference base date have total assets equal to or greater than R$ 300,000,000.00 (three hundred million reais) and non-resident investors holding any amount in their capital.
Quarterly declarations must be submitted in accordance with the following schedule:
March 31st base date: submission from April 1st to June 30th;
June 30th base date: submission from July 1st to September 30th;
September 30th base date: submission from October 1st to December 31st.
*Please note: There is no Quarterly declaration for the base date of December 31st, as in that date there is the Annual Declaration.
2. BACEN Annual Declaration
The purpose of the Annual Declaration is to identify the non-resident investors, as well as to provide accounting and economic information about company which receives the investment.
Obligation and Deadlines:
Companies that meet the following criteria must submit the Annual Declaration: total assets equal to or greater than R$100,000,000.00 (one hundred million reais) and participation of non-resident investors in their capital in any amount on December 31st of the previous year (base date).
The Annual Declaration shall be submitted between January 1st and March 31st of the year following the base date.
* Exceptionally, for December 31st, 2024 base date, the reporting period will be from February 2nd, 2025 to March 31st, 2025.
3. Five-year Declaration
The five-year declaration, which base date is December 31st of the calendar year ending in 0 (zero) or 5 (five), must be submitted by the company which receives foreign direct investment that on the base date of December 31st of the previous year had total assets equal to or greater than R$ 100,000.00 (one hundred thousand reais). The five-year declaration for 2025 must be submitted in 2026.
There will be no annual declaration whenever a five-year declaration is applicable.
Late submissions, failure to provide information or in case false, incomplete or incorrect information is provided shall submit the offenders to penalties.
The SAEKI ADVOGADOS team is prepared to assist you in any matters that may be necessary to comply with legal obligations and submission of mentioned declarations.