BACEN: Start of the deadline for the Annual Update of the Corporate Framework and delivery of the Economic-Financial Declaration (DEF) for the fourth quarter of 2021

The deadline has begun for Brazilian companies, recipients of foreign investment, to present to the Central Bank of Brazil (“BACEN”), through the Electronic Declaratory Registration – Direct Foreign Investment (RDE-IED) system:

(i) Annual Update of Corporate Structure; and

(ii) Economic-Financial Declaration (“DEF”).

Companies receiving direct foreign investment that have total assets and net equity below R$ 250,000,000.00 (two hundred and fifty million reais), must present an update of the Corporate Chart in the RDE-IED system, based on the economic-financial information calculated on December 31, 2021.

The DEF must be presented by Brazilian companies, recipients of direct foreign investments, that have net equity or total assets equal to or greater than R$ 250,000,000.00 (two hundred and fifty million reais) and the DEF must contain accounting information determined on the base date of December 31, 2021.

The deadline for compliance with obligations is March 31, 2022 and failure to provide or provide false, incomplete, incorrect information or outside the established deadlines and conditions, subjects companies to the payment of fines ranging from R$ 25,000.00 (twenty-five thousand reais) to R$ 250,000.00 (two hundred and fifty thousand reais).

We also emphasize that the sending of such periodic updates does not eliminate the obligation to update the RDE-IED after the occurrence of an event that changes, in any way, the foreign investor's shareholding, within a period of 30 days, counting from the occurrence of the event. For example: event of new payment or capital increase.

Our Corporate team | M&A is available for further clarification and assistance in completing the declarations and other steps to provide information to BACEN.

Sincerely,

CORPORATE | M&A

ENGLISH | SPANISH