Annual CBE: filing season begins

Individuals and companies holding USD 1 million or more abroad are required to submit the statement between February 15 and April 5

February 15 marks the beginning of the season for filing the annual Statement of Brazilian Capitals Abroad (CBE), which ends on April 5. The upcoming submission is mandatory for individuals and companies resident in Brazil that held abroad goods, rights or assets of any nature equal to or exceeding USD 1 million on December 31, 2022.

The CBE statement mainly serves a statistical purpose, as the Central Bank uses the information collected through it to perform assessments on Brazil's international investment position, which in turn provides support for the implementation of economic policies. Nevertheless, those required to file the declaration will be subject to a fine of up to BRL 250,000 should they fail to do so.

Changes for 2023

At the end of 2022, the enactment of new regulations changed the way through which some Central Bank obligations should be complied with. However, the provision of CBE-related information remains unchanged in relation to the old rules in terms of submission schedules, information base-dates and thresholds for declaring the amounts.

Under the new rules, financing, direct loans and trade credits granted in Brazil to non-residents have been classified as Brazilian capitals abroad, and the list of goods and assets on which information must be supplied has been broadened. Now, the following situations are subject to the provision of information:

• Ownership in non-resident companies;
• Brazilian Depositary Receipts (BDRs) issued by non-resident companies;
• Shares/units in investment funds held abroad;
• Bonds issued by non-residents;
• Loans granted to non-residents;
• Deposits made in non-resident entities;
• Trade credits granted to non-residents;
• Ownership of real estate overseas;
• Digital assets; and
• Derivative instruments traded abroad.

In addition, revenues from exports originating from abroad must also be informed along with their destination, as well as earnings stemming from Brazilian capitals abroad.

Compliance with the Central Bank

Domingues e Pinho Contadores provides instructions and assistance to individuals and companies so that they remain in good standing with the Central Bank, ensuring full compliance. You can rely on our support: dpc@dpc.com.br.