Annual CBE: filing season runs from February 15 and April 5

Companies and individuals that held assets abroad amounting to USD 1 million or more on December 31, 2023, are required to file their statements by April

On February 15, the period for submitting the Annual Statement of Brazilian Capital Abroad (CBE) to the Central Bank of Brazil (Bacen) began. This requirement, which must be complied with by 6 p.m. on April 5, applies to individuals and legal entities based in Brazil who, as of December 31, 2023, held assets abroad amounting to USD 1 million or more, or the equivalent thereof in other currencies.

The collected data aids Bacen in determining Brazil's Net international investment position, which is crucial for developing economic policies and ensuring the country’s compliance with international agreements. Hence, it is imperative for declarants to fulfill this obligation to avoid potential penalties.

What should be reported??

As a general rule, all assets and rights held abroad must be declared. Recent regulations, however, have been enacted to broaden the scope of assets subject to the reporting requirement, which now encompass:

• Equity interests in foreign entities;
• Brazilian Depositary Receipts (BDRs) issued by foreign entities;
• Shares in foreign investment funds;
• Debt securities issued by non-residents;
• Loans and financing provided to non-residents;
• Cash at foreign banks;
• Trade credits extended to non-residents;
• Real estate properties located overseas;
• Digital assets;
• Derivative instruments traded on foreign exchanges;
• Export revenues held abroad and their utulization; and
• Income from Brazilian capital abroad.

Declarants should provide accurate details on each of these assets, specifying their location, type, and market value in their original currency.

Consequences of non-compliance

Non-submission or incorrect submission of the CBE may lead to significant penalties. Depending on the nature of the violation, fines can escalate to as much as BRL 250,000 in certain situations.

Ensuring compliance with the Central Bank

Staying abreast of the regulations issued by the Brazilian Central Bank is crucial for both individuals and businesses that hold assets abroad or carry out foreign transactions.

At DPC, we provide comprehensive guidance and support to navigate these obligations—from understanding the legal requirements to the submission of statements —ensuring full compliance. Contact our team at: dpc@dpc.com.br.