Law nº 14,286 (“New Foreign Exchange Law”) was published on December 30th,  2021, introducing important changes on the Brazilian foreign exchange rules. The New Foreign Exchange Law´s objective is to simplify and modernize current regulations considering the novel global financial ecosystem and the new technologies impacting the way companies and individuals carry out foreign exchange transactions.

Please find below an overview of the most relevant changes:

  • Clarified and enacted into law the possibility of settling private transactions between residents and non-residents through simultaneous / symbolic FX contracts to enable economic “netting” of credits and debts between the same resident and non-resident entities.
  • More flexibility to open, maintain and perform foreign exchange transactions with bank accounts in Brazilian reais for non-residents.
  • More flexibility for exporters to use their revenues maintained in foreign bank accounts.
  • Payments in foreign currency of liabilities registered in Brazil would be allowed for certain foreign trade operations with goods and services (as well as warranty related financial transactions, leasing and some other types of export transactions).

The New Foreign Exchange law will enter into force one year following its enactment (i.e., January 1st, 2023). Further regulations on the new provisions of the Law are expected to be issued by the Brazilian Central Bank - BACEN. Accordingly, it is crucial to properly monitor the developments stemming from this subject and proactively evaluate any potential impacts to cross-border flows.

KPMG Brazil’s International Tax Team is here to assist you in the discussion of the terms of the new Law and design efficient strategies for business optimization.

Ericson Gama Amaral
Carlos Eduardo Toro
Marco Quadros
Henrique Palma
Murilo Mello
Roberto Salles
Camila Bacellar
Juliana Sallouti

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