According to BCB Resolution No. 278, dated as of December 31, 2022, amended by BCB Resolution No. 410, dated as of September 11, 2024 (“Resolution 278”), both published by the Brazilian Central Bank (“BACEN”), the period for submitting the Annual Declaration regarding the provision of information regarding foreign direct investment transactions (SCE-IED) for the year 2025, referring to the year 2024 (“Annual Statement”), has started.
• Requirement for the submission: Companies with foreign direct investment with total assets equal to or greater than R$100,000,000.00 (one hundred million reais) on the reference date.
• Reference date: December 31, 2024.
• Submission deadline: from February 10 to March 31, 2025.
The Annual Statement must provide detailed information reporting on the corporate structure, identification of foreign investors, economic and accounting figures, and company profits. Furthermore, additional data may be requested allowing BACEN to track economic and operational activities, such as sectors of activity, employment, revenue and international trade.
Failure in submitting the Annual Statement, or the provision of incomplete or incorrect information, subjects the declarant to a fine of up to R$ 250,000.00 (two hundred and fifty thousand reais), which may be increased by 50% in some cases, in accordance with BCB Resolution No. 131 of August 20, 2021.
Those responsible for providing the information must keep the supporting documentation for 10 (ten) years (counting from the reference date of the statement) to present it to the Brazilian Central Bank, if requested.
Costa e Tavares Paes Advogados team is available for further clarification about the statements related to the foreign direct investment transactions, as well as providing any information on the topic and assisting with filing and submission.
This newsletter is meant for information purposes only and should not be construed as a legal opinion.