Declaration of Annual Financial Information to Brazilian Central Bank – Base Period of December 31, 2021

Brazilian entities that receive direct equity foreign investment must update, by March 31, 2022, the status of their financial statements before the Central Bank of Brazil, related to the base date of December 31, 2021, regardless of: (i) the amount of such direct equity foreign investment; and (ii) the amounts booked as their Net Equity and Assets.

In addition to complying with the deadline of March 31, 2022, local legal entities with foreign equity interest that have recorded NET WORTH and/or ASSETS in an amount equal to or higher than BRL250,000,000.00 (two hundred and fifty million Brazilian reais) at the end of the fiscal year 2020, must also comply with the obligation of updating before the Central Bank their quarterly financial statements. We emphasize that the deadlines for such updates are as follows:

1. June 30 (base period ending on March 31, 2022);
2. September 30 (base period ending on June 30, 2022); and
3. December 31 (base period ending on September 30, 2022).

These updates are part of the obligations applicable to entities that receive foreign direct investment and that must be complied with before the Central Bank. Lack of or late registration could result in the application of penalties by the Central Bank.

Demarest’s Banking & Finance team is available to assist you in complying with this obligation. For more information, please feel free to contact us.