SCE-IED Alert: Annual Foreign Direct Investment Declaration deadline approaching!

The Banking and Payments practice at Lobo de Rizzo reminds Brazilian companies receiving Foreign Direct Investments (the so-called Investimento Estrangeiro Direto – “IED”) to comply with the requirement to submit the Annual Periodic Declaration to the Central Bank of Brazil (“BCB”) for the 2024 calendar year by March 31, 2025.

Who must file?
As a general rule, all Brazilian companies (whether for-profit or non-profit, regardless of legal entity type) must submit the declaration if they meet both of the following criteria:

1.    Hold IED in their share capital; and
2.    Have total assets equal to or exceeding BRL 100,000.

Declaration Types and Requirements:

The obligations are cumulative. Entities required to submit the quarterly declaration must also submit the annual and quinquennial declarations. Similarly, entities required to submit the annual declaration must also submit the quinquennial declaration, except in the year when the quinquennial declaration is due.

Upcoming Deadlines:
The next filing requirement is for the Annual Periodic Declaration, due by March 31, 2025, based on existing IED investment as of December 31, 2024. The quinquennial, annual, and quarterly declarations must be submitted according to the schedule set forth in BCB Resolution No. 278:

If the entity's total assets in Brazil are less than BRL 100 million, submission of the Annual Periodic Declaration by March 31, 2025, is not required.

How to File?

The declaration must be submitted by the company recipient of the IED investment exclusively via BCB’s Foreign Capital Information System – Foreign Direct Investment Module (Sistema de Prestação de Informações de Capital Estrangeiro – Investimento Estrangeiro Direto – SCE-IED).

Compliance Warning – Companies required to submit the declaration that fail to do so on a timely manner, or that submit false, incomplete, or incorrect information, may be subject to penalties imposed by the BCB, in accordance with Resolution BCB No 131.