Companies receiving foreign investment should attempt to the deadline to submit information to Central Bank

Companies receiving foreign direct investment, as established by Brazil’s Central Bank Circular 3,814 dated 07/12/2016, amended by Circular 3,822, of Jan-20-2017, should pay attention to the following obligations, with the service term up to Mar-31-2018:

1) Companies with assets or equity equal to or greater than BRL 250,000,000.00 (two hundred and fifty million Brazilian Reais) are required to send the Economic and Financial Statement (Declaração Econômico-Financeira - “DEF”) referring to December 31, 2017 base date.

Note: there are another three (3) deadlines during the year:

• Until June 30, 2017, for March 31 base date;
• Until September 30, 2017, for June 30 base date;
• Until December 31, 2017, for September 30 base date.

2) Companies with assets or equity less than BRL 250,000,000.00 (two hundred and fifty million Brazilian Reais) should update the information on equity and paid-in capital from receiving company, as well as the paid-in capital from each foreign investor in the record.

Important: There is also a thirty-day deadline to update this information, counted from the event occurrence date that changes the foreign investor interest.

Penalties

In both cases, Central Bank may apply penalties if taxpayers provide incorrect, incomplete, or late information.