Mandatory DEF and Annual Update for recipients of foreign capital
|All companies that are recipients of foreign capital must file, up to March 31st, 2021, a Capitalization Table Update, with information of their net equity and paid-in capital, as well as the capital invested by each of their foreign investors on December 31st, 2020.|
For companies recipient of foreign direct investment with total assets or net equity equal or superior to R$250,000,000.00 (two hundred and fifty million reais), it is mandatory to file an Economical-Financial Declaration (DEF in the Portuguese acronym) that will contain, apart from the information above, more detailed accounting information of the company.
The failure to comply with these filings subjects the company to the suspension in the RDE-IED system, which might impede the liquidation of ForEx transactions, and could also entail the application of fines at the end of an administrative sanctions procedure with the the Central Bank of Brazil.
Legal reference: Circular 3.689/2013
Adriano Consentino is the Partner of PNST Advogados supervising international flows of capital and corporate law.