Investment abroad must be declared to the Central Bank in Brazil

Those who invest abroad must pay attention to the submission of the annual declaration of Brazilian Capitals Abroad (Capitais Brasileiros no Exterior –CBE). Individuals or companies residing in Brazil that on December 31, 2019 had at least the equivalent of US$ 100,000 in investments outside the country must report these amounts to the Central Bank until 6:00 pm on April 5, 2020.

The purpose of this obligation is to collect statistical information on the country’s foreign assets inventory. According to the latest report released by the Brazilian Central Bank, in the last ten years the number of respondents has quadrupled: in 2007 there were 16,105 respondents between individuals and companies; in 2018, that number jumped to 60,301.

Joice Izabel, accountant and partner at Drummond Advisors, explains that values of any nature and tangible or intangible assets held outside the country have to be declared, such as real estate, bank accounts, shares of capital in other companies and fixed or variable income securities.

She also emphasizes: “Brazilians whose assets total more than 100 million dollars should submit the declaration every three months, so pay extra attention.”

The declaration is written down and submitted electronically, through the Central Bank website.

There are penalties — which vary according to the infraction — for those who fail to submit the declaration by the deadline, send wrong or incomplete data or even fail to make the declaration. Declarations with false information, for example, can yield a fine of up to R$ 250,000.00.

Izabel notes that it may be necessary to prove the veracity of the data submitted to the Central Bank if the institution questions values. Therefore, supporting documentation must be kept for at least five years.