The Foreign Exchange Legal Framework, defined by Law No. 14,286 of December 29, 2021 and in force since December 31, 2022, brought changes to the Brazilian foreign exchange market, to Brazilian capital abroad, to foreign capital in Brazil, and to the provision of information to the Brazilian Central Bank.
Among these changes, it is worth mentioning the new rule for the Data Update of the Foreign Capital Information System for Foreign Direct Investment (SCE-IED), formerly known as RDE-IED, which established that only Brazilian companies with foreign direct investment and total assets equal to or greater than BRL 300,000,000.00 (three hundred million reais) must provide the Economic-Financial Statement.
In this sense, Brazilian companies that receive foreign direct investment and that had, on the base date of December 31, 2023, total assets equal to or greater than BRL 300,000,000.00 (three hundred million reais) must submit the Economic-Financial Statement in the Brazilian Central Bank’s system by March 31, 2024.
It is important to note that the referred Economic-Financial Statement should also be presented in the course of 2024 by Brazilian companies that fulfill the requirements described above, observing the following deadlines: (i) regarding the base date of March 31, 2024, to be submitted by June 30, 2024; (ii) regarding the base date of June 30, 2024, to be submitted by September 30, 2024; and (iii) regarding the base date of September 30, 2024, to be submitted by December 31, 2024.
It should be noted that the absence of updating such data or delivery of the Economic-Financial Statement may result in the imposition of fines by Brazilian Central Bank, according to Article 66 of the Brazilian Central Bank Circular No. 131/2021.
