Main Amendments to the “New RDE-IED”:
1. The responsibility for the registers performed at the Central Bank and its truthfulness, legality and economic basis of the statements provided has become exclusively from the Brazilian Company recipient of the foreign investment.
2. Economic and Financial Statements from companies receiving direct foreign investments are now compulsory as provided by law.
Further clarifications on the amendments:
1. The information concerning the net patrimony values and the paid corporate capital of the receiving company, as well as the paid capital and shares (%) by the non-resident investor must be kept updated. Important: companies that have assets or liquid patrimony below R$250.000.000,00 must annually update the information with Base date of December 31st of the previous year, until March 31st.;
2. Deadline for register will remain within thirty (30) days from the occurrence of the event which alters the participation on the shares of the non-resident investor.
3. Economic and Financial Statement of companies receiving foreign direct investment with ASSETS or NET PATRIMONY below R$ 250,000,000.00 (two hundred and fifty million reais ) must provide four (4) Economic and Financial Statement annually, in accordance to the following calendar:
Calendar for submission of Economic and Financial Statements:
I. Record date of March 31st, shall be stated until June;
II. Record date of June 30th, must be stated until September 30th;
III. Record date of September 30th, must be stated until December 31st; and
IV. Record date of December 31st, must be stated at March 31st of the following year.
• The register of payments related to the operations of profits and dividends, interest on capital and return of capital, remain mandatory and declaratory, according to the pacified understanding by the Central Bank, within the terms established in the legislation in force. Exception: Register will occur automatically in cases where payment (remittance abroad) occurs under an exchange agreement – see new wording of Circular no. 3,689, article 33-A subsection “V”, amended by Circular no. 07/12/2016.
• The migration of information to the new system will occur automatically for companies that have active registers. If the migration does not occur, it is necessary to evaluate and regularize the pending issues and formally request the Central Bank to carry out the migration.
• The new system does not provide the printing of extracts and records of RDE-IED, however, it enables “screen shots” of the screens for eventual exchange closings and control / filing of our customers, banks and brokers.
• The RDE-ROF (Electronic Declaratory Register- Financial Operations) module has not presented systems alterations yet, but in the upcoming months the Central Bank will make available the rules on the implementation of the new ROF module system. As soon as such alterations occur, we will keep our customers informed.