Brazil: Alert on deadlines and requirements for submitting Foreign Direct Investment and Brazilian Capitals Abroad declarations to the Brazilian Central Bank
In brief
Under the terms of the resolutions issued by the Brazilian Central Bank (“BACEN“), certain companies based in Brazil that receive Foreign Direct Investment (“FDI“) or have Brazilian Capitals Abroad (“BCA“’) must submit five-yearly, annual and/or quarterly declarations to the BACEN.
It should be noted that companies that are obliged to declare and fail to do so within the regulatory deadline may be subject to pecuniary fines imposed by the BACEN.
In more detail
Foreign Direct Investment (“FDI“): Brazilian companies that have non-resident investments in their equity may have to submit periodic annual, five-year and/or quarterly FDI declarations before the Brazilian Central Bank (“BACEN“) by means of the BACEN’s Foreign Capital Information System – Foreign Direct Investment.
- The quarterly FDI declarations must be submitted by the Brazilian company that has total assets equal to or greater than R$ 300,000,000.00 on the base date of the quarterly reference declaration. The quarterly reference dates are 31 March, 30 June and 30 September of each year.
- The annual FDI declaration must be made by the Brazilian company that has total assets equal to or greater than R$ 100,000,000.00 the base date of 31 December of the previous year.
- The five-year FDI declaration (which has a base date of 31 December of the calendar year ending in 0 or 5) must be submitted by the Brazilian company that has total assets equal to or greater than R$ 100,000.00 on the base date of 31 December of the previous year.
The deadlines for providing such periodic FDI declarations are as follows:
- Quarterly declarations:
- base date of 31 March: from 1 April to 30 June;
- base date of 30 June: from 1 July to 30 September; and
- base date of 30 September: from 1 October to 31 December.
II. Annual and five-year declarations: from 1 January to 31 March of the following year.
There will be no annual FDI declaration in the years in which there is a five-year FDI declaration.
Brazilian Capitals Abroad (“BCA“): Brazilian companies that have BCA may be subject to the regulatory obligation to submit annual and/or quarterly BCA declarations before the BACEN (by means of an electronic system specially made available by the BACEN for this purpose).
- The quarterly BCA declarations must be submitted by the Brazilian company that has total BCA equal to or greater than US$ 100,000,000.00 on the base date of the quarterly reference declaration. The quarterly reference dates are 31 March, 30 June and 30 September of each year.
- The annual declaration must be submitted by the Brazilian company that has total BCA equal to or greater than US$ 1,000,000.00 on the base date of 31 December of the previous year.
The deadlines for providing such BCE declarations are as follows:
- Quarterly declarations:
- base date of 31 March: from 30 April to 5 June;
- base date of 30 June: from 31 July to 5 September; and
- base date of 30 September: from 31 October to 5 December.
- Annual declaration: from 15 February to 5 April of the following year.
