Jayme Petra de Mello Neto
Lawyer at Marcos Martins Advogados
Central Bank of Brazil (“BACEN”) Circular No. 3624, dated February 6, 2013, as amended by Circular No. 3830, dated March 29, 2017, established the deadlines for individuals and legal entities resident in Brazil to submit the Declaration of Brazilian Capital Abroad (“DCBE”), which is mandatory for residents in Brazil who hold assets abroad, applicable in the following ways:
- Annual Declaration: this applies to the declarant who has assets abroad totaling US$100,000.00 (one hundred thousand dollars) or more. In this case, the Declaration must be filed between February 15 and 6 p.m. on April 5, 2020, considering December 31, 2019 as the base date.
- Quarterly Declaration: applies to the declarant who has assets abroad totaling US$100,000,000.00 (one hundred million dollars) or more. The base dates to be considered in this category are March 31, June 30 and September 30, and must be submitted by 6pm on June 5, September 5 and December 5, 2020, respectively.
For the purposes of the DCBE, the following capital will be considered for declaration as assets abroad:
- Participation in foreign companies;
- Bank deposits abroad;
- Commercial credits (advances on imports and financed exports, with terms of more than 29 days, which generate a credit receivable from a person resident or domiciled abroad);
- Currency loans made by a foreign person;
- Financing, leasing or financial leasing;
- Direct Investment;
- Portfolio investment;
- Investment in Financial Derivatives;
- Real estate;
- Other investments held abroad, including assets (except real estate), virtual currencies, trusts or foundations; insurance, etc.
Submission of the Statement after the stipulated deadline, as well as submission with errors or mistakes, with false or incomplete information, or failure to submit the Statement, is subject to a fine by the Central Bank of Brazil of up to R$250,000.00 (two hundred and fifty thousand reais), as established in article 60 of BACEN Circular No. 3,857, of November 14, 2017.
The law firm Marcos Martins Advogados Associados is at your disposal for any clarifications and measures regarding the aforementioned obligations.
Any questions? Talk to our lawyers.
