Any individual or legal entity domiciled or resident in Brazil that has assets outside the country worth US$1 million or more on the base date of December 31, 2022, is obliged to file a Declaration of Brazilian Capital Abroad (DCBE) with the Central Bank of Brazil (BACEN), the deadline for which is April 5 of the following year.
If the assets abroad exceed US$100 million dollars, in addition to the annual DCBE, it will also be necessary to submit the quarterly DCBE, the schedule for which is as follows:
Quarterly 1 – referring to March 31: deadline for submission is April 30 to June 5
Quarterly 2 – referring to June 30: deadline for submission is July 31 to September 5
Quarterly 3 – referring to September 30: deadline for submission is October 31 to December 5
The Statement of Brazilian Capital Abroad is an instrument used by the Central Bank of Brazil to monitor the ownership of assets in foreign territory by individuals and legal entities resident in Brazil.
The main objective of the DCBE is to allow the Brazilian tax authorities to control the investments made by taxpayers abroad, preventing tax evasion and the use of funds of illicit origin.
If the taxpayer fails to comply with the obligation to submit the DCBE, or if they declare incorrect, incomplete or false information, they will be subject to sanctions and fines imposed by the Central Bank of Brazil, ranging from 1% of the declared value (for assets of a maximum of 25,000 reais) to 10% if they do not exceed 250,000 reais in assets.
The law firm Marcos Martins Advogados Associados is at your disposal for any clarification on these obligations.
