Declaration of Brazilian Capital Abroad 2023
April 5th, 2023, is the deadline for individuals or legal entities residing, domiciled, or that are headquartered in Brazil (including foreigners, according to the applicable criteria of the tax legislation) to present to the Brazilian Central Bank the declaration of assets and funds held overseas (“Declaration of Brazilian Capital Abroad”), referring to the base date of December 31st, 2022, according to Law 14,286 of December 29th, 2021, and to BCB Resolution 279, of December 31st, 2022.
1. Form of provision of information. The periodicity of the provision of information varies depending on the amount of assets and funds held overseas:
The declaration is mandatory for all individuals and legal entities that held assets and funds abroad in an amount equal to or higher than USD 1 million, or the equivalent amount in another currency, on the base date of December 31st, 2022, and the declaration must be presented up to April 5th, 2023 (“Annual Declaration of Brazilian Capital Abroad”).
In addition to the Annual Declaration of Brazilian Capital Abroad, the individuals and legal entities holding assets and funds abroad in an amount equal to or higher than USD 100 million, or the equivalent amount in another currency on the base dates provided, must also present the Quarterly Declaration of Brazilian Capital Abroad, as per the schedule below:
(i) with respect to the base date of March 31st, 2023, the declaration must be presented in the period from April 30th, 2023, to June 5th, 2023;
(ii) with respect to the base date of June 30th, 2023, the declaration must be presented in the period from July 31st, 2023, to September 5th, 2023; and
(iii) with respect to the base date of September 30th, 2023, the declaration must be presented in the period from October 31st, 2023, to December 5th, 2023.
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2. Information to be provided. The information to be provided includes data about assets of different natures, such as trade credits (goods and services), financial deposits abroad, investments in derivatives, loans and financing, equity investments, Brazilian Depositary Receipts, and bonds, as well as other investments, including real estate and other assets. The detailed description of the assets to be declared is available only in Portuguese on the Declaration Manual (to access such document click here).
3. Effects. The failure to provide information (or the failure to provide it within the deadline established) as well as the provision of false, incomplete, or incorrect information, may lead to the imposition of fines in the amount up to R$ 250,000.00 (two hundred and fifty thousand reais), according to BCB Resolution 131, of August 20th, 2021.
Araújo e Policastro team is at your disposal for any further clarification about this matter and to provide all the assistance to comply with such obligation.
