Bacen: check out the changes in Foreign Direct Investment Statements for 2024

FDI recipients should take note of changes pertaining to the submission schedule and information provision

Although 2024 has just begun, companies required to report their investments to the Central Bank of Brazil (Bacen) should be mindful of significant changes in the submission of data on foreign direct investment (FDI), which take effect this year.

One noteworthy change is the reintroduction of the quarterly Economic-Financial Statement (DEF) pertaining to the December 31 reference date, whose filing period has been underway since January 1, per BCB Resolution No 348/2023. This resolution, issued in the last quarter of 2023, not only reinstated the obligation but also modified the schedule for submitting periodic statements as a whole and introduced new reporting requirements for the current year.

Find out below the changes effective as of 2024.

Periodic Statements for 2024

The Quarterly Economic-Financial Statement (DEF) originally set to be replaced with the annual periodic statement for the base date of December 31, 2023, has been reinstated.

Recipients of foreign direct investment who held total assets of BRL 300 million or more on the above date should be mindful of this change. The filing period is already underway, starting from January 1, 2024, with its deadline set for March 31, 2024.

Additionally, there has been another noteworthy change in the submission schedule for the annual statement pertaining to the base year 2023, as the report will have to be filed using the Foreign Capital Census system between July 1 and August 15 (18 p.m).

Check out below the periodic statements filing schedule for 2024:

Periodic statement	FDI recipient subject to reporting requirements	Base Date	Filing Period	Details
Annual	Companies in Brazil with foreign ownership, and investment funds with non-resident shareholders, both possessing net assets of at least USD 100 million on the respective base date.	12/31/2023	07/01/2024 to 08/15/2024 (18 p.m.)	Must be filed using the Foreign Capital Census system (SCE).
Quarterly (DEF)	Companies holding total assets of BRL 300 million or more on the corresponding base date.	12/31/2023	01/01 to 03/31/2024	Originally set to be replaced with the annual statement
		03/31/2024	04/01 to 06/30/2024	No changes.
		06/30/2024	07/01 to 09/30/2024
		09/30/2024	11/11 to 12/31/2024	The filing period was originally set to start on 10/01/2024

 

It should be noted that the DEF pertaining to the December 31 reference date will eventually be replaced by the new annual statement, but this shift will not take place until February 10, 2025.

New reporting requirements

Starting from October 1, 2024, FDI information must be reported within 30 days of its occurrence in the following situations:

• Capitalization through tangible or intangible assets;
• Conversion into investment of rights that can be remitted abroad and are not reported as foreign credit;
• Assignment, exchange, and transfer of membership units or shares between resident and non-resident investors, or between two or more non-resident investors among themselves;
• International transfer of membership units or shares;
• Corporate reorganization;
• Distribution of profits and dividends, payment of interest on the shareholders’ equity, sale of shares, return of capital, and net assets resulting from settlement, when made directly abroad or in the country’s local currency,
• Local currency payments and receipts in non-resident accounts;
• Reinvestment.

Companies should take note of these changes and adapt their reporting workflows to ensure compliance with the regulations as of the aforementioned date.

Compliance with the Central Bank

DPC's team of experts is always abreast of the latest Central Bank regulations and offers support to clients who want to keep up to date with their obligations.

You can rely on our support to prepare your statements and provide information in full compliance: dpc@dpc.com.br.