Pursuant to Circular No. 3,689/2013, published by the Central Bank of Brazil, companies based in Brazil that are recipients of foreign investment ("Companies") have until April 1 to update the following information in the RDE-IED:
(i) value of the Company's equity;
(ii) value of the paid-in capital of the Company;
(iii) amount of paid-in capital by each foreign investor.
According to the said Circular, the Companies are required to update the RDE-IED:
(i) within 30 days from the date of the event that changed the ownership interest of the foreign investor(s); and
(ii) if the Companies have assets or net worth lower than two hundred and fifty million reais (R$250,000,000.00), annually, until March 31, in relation to the base date of December 31 of the previous fiscal year.
If they have assets or net worth equal to or greater than 250 million reais, the Companies shall observe the term set forth in item (i) above and, additionally, deliver to the Central Bank of Brazil 4 economic-financial statements according to the following frequency:
a. statement related to the base date of December 31: delivery until March 31.
b. statement related to the base date of March 31: delivery until June 30;
c. statement related to the base date of June 30: delivery until September 30; and
d. statement related to the base date of September 30: delivery until December 31.
As March 31 is not a business day, the deadline for compliance with the above obligations was automatically extended to April 1, 2019.
Barcellos Tucunduva Advogados remains at your disposal for further clarifications.
