Table of contents 

1. Objective and Scope

1.1. Objective of this Operation

This document explains how to complete and deliver the Census of Foreign Capital in the Country declaration on the Central Bank of Brazil website.

1.2. Scope

This procedure applies to the Company RHODIA BRASIL S.A. in WP1.

2. Definitions

The Census of Foreign Capital in the Country (Census) survey is a data source for compiling official macroeconomic statistics on Direct Investment in the Country and Activities of Multinational Companies in Brazil, meeting their international commitments to disseminate official statistics signed with the Monetary Fund. International, Organization for Economic Co-operation and Development and United Nations Conference on Trade and Development.

2.1 Data base

It is the reference date of December 31 of the base year for the information related to inventories, that is, the position records of the balance sheets, for example, the Balance Sheet, which shows the book balance of December 31st.

2.2 Base period

It is the period that comprises the 12 months between January and December of the base year for information related to flows. For the research, flows demonstrate the records of income accounts (income and expenses) in the accounting year, for example, the Income Statement for the Year, which shows the accounting entries corresponding to the period from January 1st to December 31st.

2.3 Deadline for submitting the declaration

 The period between July 1st and 6:00 pm on August 15th of the year following the base date for submitting the Census declaration. If the 15th of August is not open at the Central Bank (holidays and weekends), the final delivery date extends to the first subsequent business day.

2.4 Coin conversion

 In order to verify the mandatory declaration, in the case of liabilities denominated in a currency other than the US dollar, it is necessary to convert them to their equivalent dollar value on the base date of December 31st. Exchange rates are available on the currency conversion page of the Central Bank of Brazil website (www.bcb.gov.br).

3. Tasks description

In order to correctly fill in the declaration, we need to request some information from the HR and Finance/Accounting department, through emails and tickets.

For legal reason, the declaration must be made in an online system directly on the Census page, at the link: Censo de Capitais Estrangeiros no País, for companies and investment funds.

4. Periodicity

The completion of the Census declaration has an annual and five-yearly obligation, being:

- Annual Census (sample): refers to the base dates of years not ending in 0 (zero) or 5 (five), that is, the years in which the Five-Year Censuses do not occur.

- Quinquennial Census (population): refers to the base date of years ending in 0 (zero) or 5 (five).

5. Access to the Census declaration system

The declaration must be made in an online system directly on the Census page, for companies and investment funds.

Access the website of Banco Central do Brasil (www.bcb.gov.br), menu Estabilidade financeira >> Câmbio e Capitais internacionais >> Capitais internacionais >> Censo de capitais estrangeiros no país, link https://www.bcb.gov.br/estabilidadefinanceira/censocapitaisestrangeiros,  according to the screen shown in the figure below:

To access the system via Census login, place the cursor on this option and the option will be enabled “Entrar”, as per the following image:

Insert the following identification data:

- Declaration: choose the base period of the declaration you want to access;

- Identification data: inform CNPJ, password and text of the figure (case sensitive);

and click on ENTRAR.

6. Filling Out The Declaration

Annual Census of Foreign Capital in the Country 2022 - Base Year: 2021 "Complete Declaration"

Menu bar on the Bacen website to browse and enter the respective information:

6.1 DECLARANTE

6.1.1 CHANGE OF RESPONSIBLE OR SUBSTITUTE

Verification/alteration of responsible and substitute data;

6.1.2 DATA OF THE DECLARANT COMPANY

-Always NO for general data of the reporting company;

-Distribution in the corporate structure of the declarant: request information from whoever prepares the Financial Statement (DF). Currently Paloma and Cris Ramos.

Rhodianyl, Rhodia Operations, Solvay Chemicals and Solvay France are from abroad, therefore we have 99.99% non-residents. We can consult the Country in the link below: ttps://aodocs.altirnao.com/documentViewer.html?locale=en_US&aodocs-domain=solvay.com#Menu_listDoc/LibraryId_Q5Hs3LE6NToqZiQCO6

- Accounting information of the declarant: request at least 2 weeks in advance for the person who prepares the Financial Statement (Paloma).

- Additional detailing of the Income Statement.

• Results of non-recurring operations: ALWAYS 0.00

• Result of revaluation of assets and liabilities: see excel file: “ Base dados_Censo de Capitais Estrangeiros” on the tab “ Informações Declarante_2021” item 2.

Access WP1, open transaction FBL3N, generate the report for the following accounts: RTT-Account 84470080; AVP Clients – Account 84110010 and AVP Suppliers – Account 84010010; Company: 7523, All Items: period 01 to 12/2021.

• Result of exchange rate variation of assets and liabilities in the year 2021

- Dividends and Interest on Shareholders' Equity.

• Dividends distributed or to be distributed based on profits for the year 2021 or previous: see excel file “ Base dados_Censo de Capitais Estrangeiros” on the tab “ Informações Declarante_2021” item 6.

Access WP1, open transaction FBL3N, generate the account report: 46930000 Dividends Distributed; Company: 7523, All Items: period 01 to 12/2021. Make a subtotal of the column OFFST.ACCT, go to the end of the report and click on the 2 ** to present the information totaled by OFFST.ACCT, then click on the * in the line with the OFFST.ACCT: 12800300. All will be displayed the entries and the value to be informed.

• Interest on Shareholders' Equity distributed or to be distributed based on profits for the year 2021 or earlier, information for the 4th quarter.

Access WP1, open transaction FBL3N, generate the account report: 98534200 Interest on Equity; Company: 7523, All Items: period 01 to 12/2021. Make a subtotal of the column OFFST.ACCT, go to the end of the report and click on the 2 ** to present the information totaled by OFFST.ACCT, then click on the * in the line with the OFFST.ACCT: 12800300. All will be displayed the entries and the value to be informed.

- Declarant operational information.

• Number of employees on 09/30/2021 Request information through a ticket to HR.
• Of which, R&D employees (research and development): Request information via e-mail from Rosemeire Oliveira e Maria Fernanda.
• Amount of expenses with salaries in the year 2021? Request information through a ticket to HR.
• Amount of R&D expenses (research and development) in fiscal year 2021? See excel file “Base dados_Censo de Capitais Estrangeiros” on the tab “Informações" Declarante_2021” item 5.

Access WP1, open the KE30 transaction, enter the Operating concern: double-click Z025 (Rhodia Latin America), and click  to confirm.

Double-click the option: ZZZ-SOLV01 By Operation Type

Enter the following information: Reporting Currency, Fiscal Year, Period1, Period2, Company code, and generate the report.

Once the report is generated, look for the line referring to J01

• Does the declarant transact almost exclusively with companies abroad? Always no.

• Export of goods in the year 2021 (R$): Request to Adriano Pereira via email, at least 3 weeks in advance.

• Export of goods to companies of the same economic group in the year 2021 (R$): Request to Adriano Pereira via email, at least 3 weeks in advance.

• Import of goods in the year 2021 (R$): Request to Adriano Pereira via email, at least 3 weeks in advance.

• Import of goods from companies of the same economic group in the year 2021 (R$): Request to Adriano Pereira via email, at least 3 weeks in advance.

- Market value; Confirm who provides the information: Is it the CAM? MAC?

- Economic activities of the declarant; always the same.

6.1.3 DISTRIBUTION OF FIXED ASSETS

- Value of the declarant's fixed assets: request information from the person who makes the financial statements (DF).

- Distribution of national fixed assets: Always 100% in SP.

- Fixed assets abroad: Always 0% abroad.

6.1.4 DISTRIBUTION OF GROSS REVENUE

- National distribution of gross revenue: Always 100% in SP.

- Distribution of gross revenue abroad: Always 0% abroad.

Menu bar on the Bacen website to browse and enter the respective information:

6.2 CADASTRO DE INVESTIDOR OU CREDOR NÃO RESIDENTES

6.2.1 NON-RESIDENT INVESTOR WITH VOTING POWER EQUAL OR GREATER THAN 10%

To Include, click on include and enter the requested information based on the information provided by the person making the Financial Statements (DF), and click on save.

6.2.2 NON-RESIDENT CREDITOR: SISTER COMPANY

- To include a non-resident creditor: Sister Company, we must first access WP1, in the FBL1N transaction and remove the necessary information to complete the worksheet: Base dados_Censo de Capitais Estrangeiros, on the tab “Intercompany”.

Generate the report with the following information: Company code, open items until 12/31/2021, as shown in the figure.

Once the report is generated, we need to filter the following information:

Enter the difference signs and the blank information for Trading partner and the difference sign and BRL for Document currency, and click on .

Once the report with the selected filters is generated, make a sum by Trading Partner, after that go to the end of the report and click on the 2 **, the information of the desired sum will be displayed.

Extract this information from Sap and insert into the spreadsheet: Base dados_Censo de Capitais Estrangeiros, on the tab “Intercompany”.

As soon as you feed this spreadsheet, check what you already have registered in the Bacen declaration, as a non-resident creditor: sister company. What is not registered must be registered.

6.3 LIABILITIES WITH NON-RESIDENTS

6.3.1 LIABILITIES WITH NON-RESIDENT CREDIT SIBLING COMPANIES

- To include a liability with a non-resident creditor: Sister Company, click on include and enter the requested information based on the information provided in the spreadsheet: Base dados_Censo de Capitais Estrangeiros, on the tab Intercompany”, and click save.

6.3.2 LIABILITIES WITH NON-RESIDENT CREDITORS: OTHERS

To include a liability with a non-resident creditor: others, we must first access WP1, in the FBL1N transaction and remove the necessary information to complete the spreadsheet: Base dados_Censo de Capitais Estrangeiros, on the tab “Terceiros”. 

Generate the report with the following information: Company code, open items until 12/31/2021, as shown in the figure.

Once the report is generated, we need to filter the following information:

Enter the equal signs and blank information for Trading partner and the difference sign and BRL for Document currency, and click .

Once the report is generated with the selected filters, subtotal by Account (which would be by customer/supplier code), after that go to the end of the report and click on the 2 **, the information of the desired subtotal will be displayed.

Extract this information from Sap and insert it into the spreadsheet: Base dados_Censo de Capitais Estrangeiros, on the tab “Terceiros”.

If when extracted to the spreadsheet: Base dados_Censo de Capitais Estrangeiros, on the tab “Terceiros”, and the country of the Supplier does not appear, search for the country in SAP, in the transaction - supplier record - FK03.

Insert the customer/supplier number, and click , and press enter.

Some registration information will appear and we will search for the country.

Insert in spreadsheet: Base dados_Censo de Capitais Estrangeiros, on the tab “Base”, the code, name and country of the supplier, automatically in the third party tab, the correct country will appear. After that, open a tab, naming it Third Parties 2021, making a table summarizing the information by country, currency. Separating what is positive from the negative, and the positive is not registered in the Bacen.

- To include a liability with a non-resident creditor: others, click on include and enter the requested information based on the information provided in the worksheet: Base dados_Censo de Capitais Estrangeiros, on the tab Terceiros 2021, and click save.