Since the implementation of Law No. 14.286/2021, known as the New Foreign Exchange Legal Framework, the Central Bank of Brazil (BACEN) has issued several resolutions to regulate the foreign exchange market. One of the most recent is Resolution BCB No. 348/2023, published on October 17, 2023, which, among other measures, extends to 2024 the transition rules for the submission of periodic declarations related to foreign capital in Brazil, which were applicable in 2023.
Below is a summary of the relevant information about the quarterly and annual declarations which need to be presented to BACEN in 2024.
- Types of declarations, who must submit, and deadlines:
| Types | Who must submit | Deadlines |
| Quarterly Declaration | Direct foreign investment recipients who, on the indicated base dates, have total assets equal to or greater than BRL 300 million. | base date of 12/31/2023: declaration period from 01/01/2024, to 03/31/2024; base date of 03/31/2024: declaration period from 04/01/2024 to 06/30/2024; base date of 06/30/2024: declaration period from 07/01/2024 to September 09/30/2024. |
| Annual Declaration | Domestic legal entities with direct participation by non-residents in their capital stock, in any amount, and with net equity equal to or greater than the equivalent of USD 100 million, on 12/31/2023; and investment funds with non-resident unitholders and net equity equal to or greater than the equivalent of USD 100 million, on 12/31/2023, through their administrators. | declaration period from 07/01/2024 to 08/15/2024, until 6:00 PM. |
- Submission Method:
Declarations must be made directly on the BACEN’s website. The Quarterly Declarations, must be submitted in the SCE-IED system, using the economic-financial declaration functionality. The Annual Declaration, on the other hand, must be filled out and submitted through the Foreign Capitals Census system.
- Information to be Declared:
The information required for the Quarterly Declaration can be found in the SCE-IED Declarant Manual, available on BACEN’s website. Similarly, the details required for the Annual Declaration are contained in the Foreign Capitals Census Declarant Manual, also accessible through the BACEN’s portal.
- Penalties:
Under the applicable legislation, failure to provide information or the provision of false, incomplete, incorrect, or late information subjects offenders to penalties, as stipulated in BCB Resolution No. 131, dated August 20, 2021.
BACEN will maintain the confidentiality of the data obtained from the declaration and will disclose it in a consolidated manner, in such a way as not to identify individual situations.
Finally, those responsible for the information must keep the supporting documentation of the information provided for 5 years from the declaration’s base date, for presentation to BACEN if requested.
The KLA Corporate’s Team is available for any clarifications and to assist you in completing and sending the declarations.
