Any entity constituted or organized in Brazil that is a recipient of direct foreign investment or other economic rights of a non-resident in the country derived from an act or agreement, whenever the return on this investment depends on the results of the business, must observe the rules and submit the declarations required in the indicated deadline.
The New Exchange Framework (Law No. 14,286/2021, BCB Resolutions 277/2022, 278/2022, 281/2022, 337/2023, and 348/2023) brought important determinations regarding the Brazilian exchange market, Brazilian capital abroad, foreign capital in Brazil, and the provision of information to the BCB.
The changes established new values, deadlines, and criteria relating to the mandatory quarterly, annual, and five-year periodic declarations of foreign direct investments in Brazil.
Non-provision of this information regarding foreign capital in the country, as well as the provision of false, incomplete, incorrect, or out-of-date information, are subject to the imposition of fines that can reach two million and five hundred thousand reais (BRL 2,500,000.00).
See below a summary of the new rules for periodic declarations and be aware if your company is subject to this obligation:
| DECLARATION | WHO MUST DECLARE | DECLARATION DEADLINE AND BASE DATE |
| Quarterly | Any entity receiving foreign direct investment that, on the reference base date, has total assets equal to or greater than three hundred million reais (BRL 300,000,000.00). | •From 01/01/2024 to 03/31/2024, referring to the base date of 12/31/2023; •From 04/01/2024 to 06/30/2024, referring to the base date of 03/31/2024; •From 07/01/2024 to 09/30/2024, referring to the base date of 06/30/2024; •From 11/11/2024 to 12/31/2024, referring to the base date of 09/30/2024. |
| Annual | Transition Rule: For the annual declaration with a base date of 12/31/2023, any entity receiving foreign direct investment that, on the reference base date, has owners’ equity equal to or greater than one hundred million US dollars (USD 100,000,000.00). General Rule (from 02/10/2025): Any entity receiving foreign direct investment that, on the reference base date, has total assets equal to or greater than one hundred million reais (BRL 100,000,000.00). | •Transition Rule: For the base date of 12/31/2023, the annual declaration must be submitted between 07/01/2024 and 08/15/2024, at no later than 6 p.m., in the Census of Foreign Capital system. |
| Five-year | Any entity receiving foreign direct investment that, on the reference base date, has total assets equal to or greater than one hundred thousand reais (BRL 100,000.00). | • For the base date of 12/31 of the years ending in zero (0) or five (5), the five-year declaration must be submitted between 01/01 and 03/31 of the subsequent year. *There will be no annual declaration in years in which there is a five-yearly declaration. |
The Corporate team of Azevedo Sette Advogados is available to analyze your case and provide clarifications and additional measures on the matter, including making the necessary registrations and updates before the BCB.