Quarterly declaration to the Central Bank of assets rights held abroad

As of October 31, the quarterly declaration of overseas assets & rights held by Brazilians must be submitted to the Brazilian Central Bank (Bacen) referring to the base-date of September 30, 2019. The quarterly information must be submitted by December 05.

Individuals and legal entities resident, domiciled or or headquartered in Brazil (thus pursuant to Brazilian tax legislation) holding, outside the Brazilian territory, assets of any nature amounting to more than one hundred million US dollars (USD 100,000,000.00) on the base-date September 30, 2019, are required to file the declaration.

Assets held abroad subject to declaration include:

1.  cash deposits;
2. credits originating from currency and financing loans;
3. credits originating from leasing and lease with a purchase option;
4. direct investments and portfolio investments;
5. investments in financial derivatives;
6. commercial credits; and
7. property, other investments and other assets.

Failure to report the information required by Bacen or submission of false, incomplete, incorrect or noncompliant information, as well as late reporting, constitute violations subject to penalty of a fine that may range from BRL2,500.00 to BRL250,000.00 with the possibility of an increase of 50% in some specific cases. Additionally, failure to report deposits held abroad, in theory, constitute a crime of capital evasion.

Bacen shall keep confidential all data received. Therefore, if Bacen decides to disclose information it will do so without identifying individual situations.

Our Banking & Finance team is ready to assist you in complying with this obligation. For more information, please feel free to contact us.