Brazilian taxpayers with foreign assets worth at least $100,000 or the equivalent in other currencies as of December 31, 2009, have until July 30 to report those assets under the filing deadline set by Brazil’s Central Bank. As of 2011, quarterly returns will be mandatory for assets in excess of $100 million.
In addition to the legal obligation to file annual income tax returns, Brazilian individuals and companies with substantial foreign assets must file an annual return (Declaração Eletrônica dos Capitais Brasileiros no Exterior, or CBE) with Brazil’s Central Bank declaring all foreign assets held during the preceding year.
The filing period for the 2009 return was established by Circular 3,496/2010, published in the official gazette on June 4. The new CBE was created by Resolution No. 3,854/2010, published in the official gazette of May 27.
The information reported in the CBE must be divided into the following categories:
- deposits abroad;
- cash loans;
- financing;
- operational and financial leasing;
- direct investments;
- portfolio investments;
- investments in derivatives; and
- other investments, including real estate and other assets.
Inaccuracies or failure to file the CBE in a timely manner may subject the taxpayer to penalties of up to BRL 250,000 (about $132,000).
As of 2011, Brazilian individuals and companies holding more than $100 million in foreign assets will have to file quarterly CBEs for quarters ending on March 31, June 30, and September 30, without prejudice of the annual CBE. The first-quarter CBE will cover foreign assets held by Brazilians by March 31, 2011; the Central Bank will issue the filing schedule and further regulation of this new CBE.