As of February 15, 2019, the annual information return on Brazilian Capital held Abroad must be submitted to the Brazilian Central Bank (“Bacen”) referring to the base date of December 31, 2018. The annual declaration must be submitted between February 15, 2019 and April 05, 2019.
All individuals and legal entities that are resident, domiciled or headquartered in Brazil (pursuant to Brazilian tax legislation) and that have, outside Brazilian territory, assets of any nature amounting to more than one hundred thousand US dollars (US$ 100,000.00) on the base date December 31, 2018, 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 receivables 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 false, incomplete, incorrect, noncompliant or late reporting will constitute violations subject to a fine that may range from R$ 2,500.00 to R$ 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.
Our Banking & Finance team is ready to assist you in complying with this obligation. For more information, please feel free to contact us.