One More Central Bank Declaration

We know - it’s a lot to keep track of. Doing business in Brazil requires filing a myriad of documents every year, even for companies that aren’t actively engaged in business. Whether it’s with the Receita Federal (federal tax authority), the Central Bank or the municipal government, there’s always something to file.

Last week we discussed the Capitais Brasileiros no Exterior declaration (CBE), which requires Brazilian residents with assets of US$1,000,000 or more outside Brazil to file a yearly declaration with the Central Bank. Now, it’s time to look at another Central Bank declaration.

The Declaração Econômica Financeira or DEF is a declaration filed yearly by Brazilian companies with assets or patrimônio líquido (net equity) equal to or greater than R$250 million that receive foreign direct investment. The specific requirements are set forth in Circular N°3.689, a directive that was passed in 2013 and last updated in 2016. For companies that meet the filing threshold, declarations are due quarterly each year.

Circular N°3.689 also requires that companies that have received foreign direct investment keep certain information updated in the Central Bank’s online system. At a minimum, this means updating the company’s patrimônio líquido (net equity), capital social integralizado (paid-in capital), and each foreign investor’s respective paid-in capital on a yearly basis.

Whether it’s your lawyer, your accountant or a paralegal company helping you, make sure you’re complying with all of the filing requirements. With so many declarations from different government agencies, it can get confusing rather quickly.