Investments made outside of Brazil must be declared by individuals or legal entities resident or headquartered in Brazil, annually or quarterly, according to the value of their assets abroad.
Who is required to submit?
The Statement of Brazilian Investments Abroad (DCBE) is mandatory for individuals or legal entities resident, domiciled or headquartered in Brazil, including foreign citizens residents in Brazil, who hold assets outside Brazil totaling:
- USD 1,000,000.00, or equivalent in other currencies, on December 31 of each base year – Annual CBE.
- USD 100,000,000.00, or equivalent in other currencies, on March 31, June 30, and September 30 of each base year – Quarterly CBE.
What is the deadline? Until 06:00 p.m. of:
- April 5, 2022, for the annual statement referring to the base date of December 31;
- June 5, 2022, for the quarterly statement referring to the base date of March 31;
- September 5, 2022, for quarterly statement referring to the base date of June 30;
- December 5, 2022, for the quarterly statement referring to the base date of September 30.
Is There a Fine?
Non-compliance or inadequate compliance with the obligation subjects the violator to the application of a fine by the Central Bank of Brazil - increasingly active in this area -, as follows:
- Making a registration or submitting a statement in disagreement with the deadlines provided for in the respective rules: 1% of the amount subject to registration or statement, limited to BRL 25,000.00;
- Providing incorrect or incomplete information: 2% of the amount subject to registration or statement, limited to BRL 50,000.00;
- Failure to register, failure to submit the statement, or failure to present documentation supporting the information provided to the Central Bank of Brazil: 5% of the amount subject to registration or statement, limited to BRL 125,000.00, or
- Providing false information in a registration or statement: 10% of the amount subject to registration or statement, limited to BRL 250,000.00.
The Tax and Corporate teams of Azevedo Sette Advogados are at your disposal for guidance and clarification of doubts on the subject matter, as well as for assistance with the submission of the DCBE.
Contribution of Pedro Henrique Vasconcellos Moraes.