Law 14286/2021, which went into effect on 12/31/2022, is the new legal framework for the foreign exchange and international capital markets. The Central Bank issued Resolution BCB no. 278/2022 in order to adapt to the new legislation its regulations regarding foreign capital in the country (foreign credit operations and foreign direct investment).

With regard to the provision of information concerning foreign direct investment, which must be submitted periodically to the Central Bank by the recipients, we highlight the following changes:

Annual Statement: Base date on December 31 of the previous year, in case of having total assets worth R$ 100,000,000.00 (one hundred million reais) or more. The delivery deadline is between January 1st and March 31st of the following year. The Annual Statement for the base date 12/31/2022 must be submitted exclusively through the Foreign Capital Census system, between July 1 and 6 pm on 08/15/2023.

- Quarterly Statements: Base dates on March 31, June 30 and September 30 of each year, in case of having total assets of R$ 300,000,000.00 (three hundred million reais) or more, with delivery deadline between:

(i) April 1 and June 30, for the base date of March 31;

(ii) July 1 and September 30, for the base date of June 30; and

(iii) October 1 and December 31, for the September 30 base date. Exceptionally, for the base date of September 30, 2023, the delivery must occur between November 1st and December 31, 2023.

Five-year declaration: Base date on December 31 of the calendar year ending in 0 (zero) or 5 (five), in the case of having total assets in an amount equal to or greater than R$ 100,000.00 (one hundred thousand reais), on the base date of December 31 of the previous year. The delivery deadline occurs between January 1st and March 31st of the subsequent year. In years when there is a Five-Year Declaration, there will be no annual declaration.

Special Feature:

As of the base date 12/31/2022, only receivers that have total assets of R$ 300,000,000.00 (three hundred million reais) or more must submit the economic-financial statement ("DEF"). The DEF delivery deadline for the 12/31/2022 base date is between January 1st, 2023 and March 31st, 2023.

The annual updating of the corporate chart of receivers that have assets worth less than R$300,000,000.00 (three hundred million reais) will not be due.

The party responsible for providing information must keep at the disposal of the Central Bank the supporting documentation for the information provided updated and in order, until the end of the ten (10) year period, counting from the liquidation of each investor's foreign direct investment in the recipient.

Our foreign investment team at Miguel Silva & Yamashita - MSY will be happy to provide you with additional information on the subject.