Commencing July 31, quarterly data on overseas assets & rights held by Brazilians must be submitted to the Brazilian Central Bank (Bacen) referring to the base-date of June 30, 2019. The quarterly information must be submitted by September 5, 2019. Individuals and legal entities domiciled, headquartered or residing in Brazil (pursuant to Brazilian tax legislation) holding assets of any nature, outside the Brazilian territory, amounting to more than one hundred million US dollars (USD 100,000,000.00) on the base-date June 30, 2019, are required to file the quarter declaration.
The following are the assets that must be reported: (a) cash deposits, (b) credit originating from cash loans and from financing, (c) credit originating from leasing and lease with a purchase option, (d) direct investments and portfolio investments, (e) investments in financial derivatives, (f) commercial credit, and (h) real estate, other investments and other assets. Failure to report the information required by Bacen or submission of false, incomplete, incorrect, noncompliant information or even late reporting will constitute violations subject to a penalty in the form of a fine that may range from BRL 2,500.00 to BRL 250,000.00 and that may be increased by 50% in some specific cases. Additionally, failure to report assets and rights held abroad may, in theory, constitute a crime of capital evasion.
Bacen shall treat all data received as confidential. 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.