The deadline for submitting the Annual Periodic Declaration of Foreign Direct Investment (Base Year 2022) to the Brazilian Central Bank (BCB) ends on August 15, 2023.

Check if your company needs to declare and how to do it.

What is it about?

This is an annual obligation to be fulfilled by the recipient of foreign direct investment that, on the base date of December 31st of the previous year, has total assets in an amount equal to or greater than BRL 100 million.

Specifically for the base date of December 31st, 2022, the declaration will be mandatory only for legal entities and investment funds with net equity equal to or greater than the equivalent of US$ 100 million.

The declaration includes information on (i) corporate structure and identification of non-resident investors; (ii) book and economic value of the recipient; (iii) operating and non-operating profit of the recipient; and (iv) complementary accounting data of the recipient.

Regulations and Deadline for Submission

BCB Resolution n. 278/2022, arts. 32 and following
BCB Resolution n. 281/2022
(Transitional rule, until December 31st, 2023)
Deadline for submission: 07.01.2023 until 08.15.2023

Who needs to declare?

I) Legal entities headquartered in Brazil, with direct participation of non-residents in their capital stock, in any amount, and with net worth equal to or greater than the equivalent of US$100 million, on the base date of December 31st, 2022; and
II) Investment funds with non-resident quota holders and net worth equal to or greater than the equivalent of US$100 million, on base date of December 31st, 2022, through their managers.

How to Declare?

The annual periodic declaration of foreign direct investment must be submitted through the Foreign Capital Census System. The Declarant’s Manual, and other information on submission are available on BCB’s website.

Penalties and Information Safekeeping

Delay, non-submission, or submission with incorrect, false or incomplete information subject the declaring legal entity to fines of up to BRL 250,000.00. Those responsible must keep the supporting documentation of the information provided for five years, as of the base date of the respective declaration.

Our teams are available to clarify any doubts and provide support in submitting the Declaration to BCB.