Originally published in the April 16 edition of World Tax Daily (Copyrights Tax Analysts)
Brazilian taxpayers with foreign assets worth at least $100,000 or the equivalent in other currencies as of December 31, 2008, have until May 29 to report those assets under a filing deadline set by Brazil’s Central Bank.
The filing period was established by means of Circular 3,442/2009 and Carta-Circular 3,385/2009, published in the official gazette on March 3 and 25, respectively.
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 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 (approximately $115,000).
David Roberto R. Soares da Silva