As of February 15, 2023, all individuals or legal entities, either resident, domiciled or headquartered in Brazil, holding values, goods, rights and/or assets of any nature abroad, in amounts equal to or greater than one million US dollars (USD 1,000,000.00), or the equivalent in other currencies, must submit the annual Declaration of Brazilian Capital Abroad (“CBE Declaration“), referring to the base date of December 31 of the immediately preceding year, pursuant to the Resolution No. 279, of December 31, 2022, issued by the Central Bank of Brazil (“Bacen”).
The aforementioned Resolution also establishes that individuals or legal entities that hold values, goods, rights and/or assets of any nature abroad in amounts equal to or greater than one hundred million US dollars (USD 100,000,000.00), or the equivalent in other currencies, must submit, in addition to the annual declaration mentioned above, the quarterly CBE Declaration, referring to the base dates of March 31, June 30 and September 30 of the current year.
It should be noted that, in the event that the assets held abroad by residents are kept in a joint account or, in any other way, are jointly held by two or more individuals or legal entities, each party shall consider the full value of said asset in order to verify whether it meets the requirements regarding the obligation to submit the CBE Declarations. Within this context, although considering the full value of the asset in order to verify whether it meets the requirements to submit the referred declaration, each declarant must submit the declaration only in relation to its respective share, even if the total amount individually declared is less than the thresholds provided for in the Resolution No. 279/2022.
With regard to the limits referred to above, it is also worth mentioning that: i) in the case of residents, said limits shall not include BDRs (Brazilian Depositary Receipts) and quotas of investment funds which hold assets abroad; ii) in the case of BDR depository institutions, said limits shall be calculated individually by a program authorized by the Brazilian Securities Commission; and iii) in the case of investment funds, said limits shall be calculated by the total assets held abroad.
The deadlines for submitting the 2023 annual and quarterly CBE Declarations are:
i. the annual CBE Declaration for 2023, regarding the reference date of December 31, 2022, must be submitted between February 15, 2023 and 6 p.m. on April 5, 2023;
ii. the quarterly CBE Declaration regarding the reference date of March 31, 2023 must be submitted between April 30, 2023 and 6 p.m. on June 5, 2023;
iii. the quarterly CBE Declaration regarding the reference date of June 30, 2023 must be submitted between July 31, 2023 and 6 p.m. on September 5, 2023; and
iv. the quarterly CBE Declaration regarding the reference date of September 30, 2023 must be submitted between October 31, 2023 and 6 p.m. on December 5, 2023.
The annual and quarterly CBE Declarations must be submitted to Bacen through the CBE declaration system available on the Bacen website – www.bcb.gov.br –, and shall include information related to: i) interest in the corporate capital of non-resident companies; ii) BDRs issued by non-resident companies; iii) shares of investment funds abroad; iv) debt securities issued by non-residents; v) loans and financing granted to non-residents; vi) deposits in non-resident institutions; vii) trade credits granted to non-residents; viii) real estate properties located abroad; ix) virtual assets; x) derivatives traded abroad; xi) revenues from exports held abroad and their use; xii) income from Brazilian capital abroad; and xiii) assets abroad whose ownership was transferred by means of any arrangement, revocable or not, to a trustee abroad for administration for the benefit of certain resident beneficiaries.
It is incumbent on i) individuals or legal entities, either resident, domiciled or headquartered in Brazil, holding Brazilian capital abroad; ii) BDR depository institutions; iii) investment funds with investments abroad, by their managers; and iv) the resident beneficiaries of the arrangements referred to in item “xiii” above; to submit the annual and quarterly CBE Declarations to Bacen.
Those responsible for the submission of the annual and quarterly CBE Declarations must keep the supporting documentation relating to the submitted information on file for a period of ten (10) years counting from the reference date of the respective CBE Declaration, for presentation to Bacen, when requested.
Failure to submit the CBE Declaration, their untimely submission, or their submission in breach of the conditions provided for in the regulations in force regarding Brazilian Capital Abroad, or, even, the submission of false, incomplete, or incorrect information, may subject the individuals and legal entities referred to above to the pecuniary penalties set forth in the Resolution No. 131, of August 20, 2021, issued by Bacen.
