With the Resolutions BCB # 278 and # 281, the Central Bank of Brazil (Banco Central do Brasil) made some changes and adaptations in the SCE-IED system (new acronym adopted by the Central Bank for the former RDE-IED system) to reflect the modifications brought by the Federal Law # 14.286, dated December 29, 2021, which established the New Legal Framework for the Foreign Exchange Market and International Capital, entered into force since December 31, 2022.
The Resolution BCB # 278 brought, in articles 38 to 40, the modification of the periodic statements required to provide information related to corporate interest in Brazilian Companies, and branches established in Brazil, held by persons or legal entities domiciled outside Brazil.
Therefore, with the new changes, the Brazilian Companies that receive direct foreign investment and have assets or net equity in an amount equal to or higher than R$ 300,000,000.00 (three hundred million Brazilian Reais), shall provide such information to the Central Bank of Brazil:
- until March 31, 2023, referring to the base date of December 31, 2022;
- until June 30, 2023, referring to the base date of March 31, 2023;
- until September 30, 2023, referring to the base date of June 30, 2023; and
- until December 31, 2023, referring to the base date of September 30, 2023.
Thereafter, since the enactment of the Resolution, the rule for the obligatory delivery of the Quarterly Statement was changed from receivers of direct foreign investment with assets or net equity in an amount equal to or higher than R$ 250,000,000.00 (two hundred and fifty million Brazilian Reais), to receivers of direct foreign investment with assets or net equity in an amount equal to or higher than R$ 300,000,000.00 (three hundred million Brazilian Reais).
This obligation is required by article 6, sole paragraph of Resolution BCB # 281, and will be unique in its current format. As of next year, the declaration to which direct foreign investment recipients will be subject, relative to the base date of December 31, will adopt a cut-off value of R$ 100,000,000.00 (one hundred million Brazilian Reais) for total assets and will replace the annual data update that existed until last year in the SCE-IED system (new acronym adopted by the Central Bank for the former RDE-IED system).
Not providing such information to the Central Bank of Brazil, or providing it with delay, shall subject the defaulting company to pecuniary penalties defined in article 66 of the Resolution BCB # 131.
Should you need any assistance, we remain at your disposal to provide our services in order to comply with these procedures.