Filing season for Central Bank periodic statements has started

Recipients of foreign direct investment should be mindful of the requirement to supply information

On July 3, the Central Bank of Brazil opened the filing season for two statements related to the receipt of foreign direct investment, which demands the attention of companies legally required to provide this information.

These statements must be filed to supply information pertaining to:

corporate structure and identification of non-resident investors;

carrying value and economic value of the assets held by recipients;

operating and non-operating income of recipients; and

supplementary accounting data of recipients.

Quarterly Periodic Statement

Companies receiving foreign direct investment whose total assets are equal to or greater than BRL 300 million must provide information pertaining to the reference date of June 30. The statement must be filed between July 3 and September 30.

This statement should be prepared using the Economic-Financial Statement (DEF) functionality in the Foreign Direct Investment Reporting System.

Annual Periodic Statement

Recipients of foreign direct investment and investment funds in the country with direct ownership stake in their capital by a non-resident investor or shareholder, in any amount, whose equity was, in any case, equal to or greater than USD 100 million or equivalent thereof, on December 31, 2022.

Thus, in 2023, between July 3 and 6 p.m. on August 15, the Annual Periodic Statement for the base date 12/31/2022 should be filed using the Foreign Capital Census system.

Below is a breakdown of the upcoming submissions:

	Quarterly Periodic Statement	Annual Periodic Statement
Base-date	June 30, 2023	December 31, 2022
Filing season	July 3, 2023 to September 30, 2023	July 3, 2023 to 6 p.m. on August 15, 2023
Mandatory for	Recipients of foreign direct investment that, on the base date, held total assets in an amount equal to or greater than BRL 300 million	Recipients of foreign direct investment whose equity were equal to or greater than USD 100 million or equivalent thereof, on the reference date of December 31 of the previous year.
System	Economic-Financial Statement (DEF) functionality in the Foreign Direct Investment Reporting System.	Census of Foreign Capital (Censo)

Penalties

Failure to provide periodic statements, or doing so by filling them out with false, incomplete, incorrect or untimely information subjects the liable party to a fine of up to BRL 250,000.

Specialized advisory services for Central Bank requirements

Domingues e Pinho Contadores has a team dedicated to assisting individuals and companies in complying with their Central Bank requirements. You can count on our support: dpc@dpc.com.br.