The companies incorporated in Brazil, which hold capital equity of a foreign shareholder, must be registered in the Information Reporting System of Foreign Direct Investment (“SCE-IED”), which is a Brazilian Central Bank’s (“BACEN”) ancillary obligation.

As of 12/31/2022, recipient companies that have foreign shareholder participation are required to provide the information in the following instances:

i  Quarterly Report: if its total assets are equal to or exceeding R$ 300,000,000.00 (three hundred million reais), on the base dates of March 31, June 30 and September 30 of each year;

ii  Annual Report: if its total assets are worth R$ 100,000,000.00 (one hundred million reais) or more, on the base-date of December 31 of the previous year; and,

iii Five-Year Report: if its total assets are in an amount equal to or greater than R$100,000,000.00 (one hundred thousand reais), on the base date of December 31 of the calendar years ending in 0 or 5.

We remind you that the SCE-IED deadline for the annual update, referring to the base date of December 31, 2022, ends on March 31, 2023.