Information Return to the Central Bank on Assets and Rights Abroad
Annual and quarterly information returns on Brazilian Capitals held Abroad must be submitted to the Brazilian Central Bank (BCB) from February 15. Annual information returns referring to the base date of December 31, 2017 must be submitted to the BCB between February 15, 2018 and April 05, 2018.
Quarterly information returns must be submitted within the following periods: (i) base date on March 31, 2018: submission between April 30, 2018 and June 05, 2018; (ii) base date on June 30, 2018: submission between July 31, 2018 and September 05, 2018, and (iii) base date on September 30, 2018: submission between October 31, 2018 and December 05, 2018.
The ANNUAL information return must be filed by individuals and legal entities that are domiciled or based or that reside in Brazil (pursuant to Brazilian tax legislation) and that had, outside the Brazilian territory, assets in currency, sums of any nature, assets and rights amounting to more than one hundred thousand US dollars (US$ 100,000.00) on the base date December 31, 2017.
QUARTERLY information returns must be filed by individuals or legal entities that are domiciled or based or that reside in Brazil (pursuant to Brazilian tax legislation) and that had, outside the Brazilian territory, assets amounting to more than one hundred million US dollars (US$ 100,000,000.00) on the base dates March 31 and/or June 30 and/or September 30, 2018.
The following types of assets must be reported: (a) deposits abroad, (b) credits originated from loans in currency, (c) credits originated from financing, (d) credits originated from lease and lease with a purchase option, (e) direct investments, (f) investments in portfolio, (g) investments in financial derivatives and (h) other investments, including property and other assets.
Failure to report the information required by the BCB or false, incomplete, incorrect, noncompliant or late reporting will constitute violations subject to the following penalties: (i) R$ 25,000.00 or 1% of the amount to be reported, whichever is the lowest, if the information return is not filed within the required periods; (ii) R$ 50,000.00 or 2% of the amount to be reported, whichever is the lowest, if the information provided is incorrect or incomplete; (iii) R$ 125,000.00 or 5% of the amount to be reported, whichever is the lowest, if the information return is not filed or no documentation proving the information provided is submitted to BCB; (iv) R$ 250,000.00 or 10% of the amount to be reported, whichever is the lowest, if the information return is false or if the information provided on the amounts to be reported is false. In theory, failure to report deposits abroad may be deemed crime of capital evasion.
Under the law, all data received must be kept confidential by the BCB. If BCB discloses any data on the information returns, it will do so without identifying individual situations. The information return must be filled out and sent directly to the Brazilian Central Bank by means of a program available on its website (www.bcb.gov.br). The declarant's manual is also available on this website.
Our law firm may file the information return for your company or guide you through this process, if you are interested.