Among the changes introduced, we cite as the most relevant: (i) the creation of automatic registration for certain operations; and (ii) the new obligation to provide economic and financial information by Brazilian companies receiving foreign direct investment.
With the advent of the Standards, there are currently two ways of registering direct investment in the RDE-IED system: automatic and declaratory.
The amounts originating from the following will be automatically registered in the aforementioned system, based on the information contained in the exchange transaction or international transfer in reais: (a) inflow of foreign currency; (B) conversion of other types of financial transactions (e.g., loans, import of goods, among others) into foreign direct investment; (C) international conference of quotas or shares; and (D) remittance abroad of profits and dividends, interest on equity and return of capital.
However, companies must register in the RDE-IED the amounts originating from: (a) entry of assets for capitalization in the Brazilian company; (B) corporate reorganizations (incorporation, merger or spin-off) in which at least one of the companies has foreign capital registered with BACEN; (C) exchange of equity interests in Brazil; (D) conference of shares and quotas; (E) reinvestment in the Brazilian company; (f) distribution of profits/dividends, payment of interest on equity, sale of shares, return of capital and net assets resulting from liquidation that are used for reapplication in other receiving companies in Brazil, or that are used in payments in the country or directly abroad.
Furthermore, Brazilian companies that receive foreign direct investment (“Brazilian Companies”) must update the values of their net worth and paid-in share capital; or their economic and financial information, depending on the requirements described below.
Regarding the provision of information about the equity and paid-in share capital, Brazilian Companies must periodically declare said information within 30 days of the occurrence of any event that changes the shareholding of a foreign investor (this obligation applies to both Brazilian Companies with assets or net equity less than, equal to or above 250 million reais); E (B) until March 31, referring to the base date of December 31 of the previous year, this obligation applicable only to Brazilian Companies with assets or net equity less than 250 million reais.
In the case of Brazilian Companies with assets or equity equal to or greater than 250 million reais the following annual schedule applies for the delivery of economic and financial statements: (i) until June 30, in relation to the base date of March 31 of the same year, (ii) until September 30, in relation to the base date of June 30 of the same year, (iii) until December 31, in relation to the base date of September 30 of the same year, and (iv) until March 31, in relation to the base date of December 31 of the previous year.
Failure to comply with the obligations relating to these declarations may result in the application by BACEN of a fine of up to R$250.000,00.
Considering that the deadline for transmitting the first declaration of economic and financial information must be carried out until March 31, 2017, we are at your disposal to help you with whatever you need.
