The Brazilian companies which, on 12.31.20, were recipients of foreign direct investment are obliged to update the RDE-IED (Declaratory Electronic Registration of Foreign Direct Investment) system of the Central Bank until March 31, 2021.
The Annual Data Update is mandatory for all companies with total assets AND shareholders' equity below R$250 million. To comply with the periodic update, it is necessary to register a new corporate structure on the base date of 12.31.20.
The DEF, on the other hand, is mandatory for companies with total assets OR net worth equal or greater than R$250 million. The DEF obligation is quarterly, and must comply with the following schedule:
- Up to March 31, for the base date of 12.31 of the previous year;
- Up to June 30, referring to the base date of 31.03;
- By September 30, for the base date of 06.30;
- Up to 31 December, referring to the base date of 30.09.
For companies required to report the DEF, the flow type variables (profit/loss, distributed profit, foreign exchange income/expense and impairment income/expense) must be reported at the value calculated in the calendar quarter.
The BTLAW Corporate Team is available to assist you with further information.
