The period for annual declaration to the Brazilian Central Bank (Bacen) of Brazilian Capital held Abroad (CBE), referring to the base date of December 31, 2019, shall be open until April 5, 2020.
All individuals and legal entities that are resident, domiciled or headquartered in Brazil (thus in accordance with Brazilian tax legislation) and that hold, outside Brazilian territory, assets of any nature amounting to or exceeding one hundred thousand US dollars (USD 100,000.00) on the base date December 31, 2019, must file the annual information return.
Among the assets that must be reported, are the following:
a. cash deposits;
b. credit originating from cash loans and from financing;
c. credit originating from financial lease receivable and lease with option to purchase;
d. direct investments and portfolio investments;
e. investments in financial derivatives;
f. commercial credit; and
h. 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 a fine that may reach two hundred and fifty thousand Brazilian reais (BRL 250,000.00), with the possibility of a 50% increase in some specific cases. In addition, failure to report cash deposits abroad may, in theory, be deemed a crime of capital evasion.
Bacen is required to keep all data received confidential. Therefore, should Bacen decide to disclose information it will do so without identifying individual cases.
Demarest’s Banking and Finance team is ready to assist you in complying with this obligation. For more information, please feel free to contact us.