Brazilian Capitals Abroad: obligations of individuals and legal entities to provide information and deadlines to file in 2020

Amanda Martines and Augusto Andrade

According to the Central Bank, Brazilians accumulated US$ 498.8 billion in investments abroad in 2017. The volume leaves no doubt that these transactions will be monitored with increasing rigor by the monetary authority.

The agency annually monitors the allocation of brazilian capital by individuals and legal entities to other countries through statements for statistical purposes, such as the declaration of Brazilian Capitals Abroad (CBE), which reveals the amount and location of these resources.

Assets and rights, real estate, deposits, availability in foreign currency, loans, shares, participation in capital of a foreign company, among other assets held abroad must be informed.

CBE 2020: obligation, deadlines and penalties

The presentation of CBE is mandatory for individuals or legal entities resident, domiciled in Brazil, who have assets, goods and rights abroad.

The Annual CBE is mandatory for residents who have foreign assets in an amount equal to or greater than US$ 100 thousand.

The annual CBE filling deadline starts on February 15 and ends at 6 pm on April 5.

Also see: CBE 2020 - Assets of any nature held outside the country by residents of Brazil must be reported to Central Bank

CBE Quarterly is mandatory for residents who have foreign assets in an amount equal to or greater than US$ 100 million.

The calendar is fixed every year and whenever the stipulated date coincides with a day when there is no office at the Central Bank, there is the following adjustment:

- Initial date: the opening of the period is postponed until 10 am on the first subsequent working day.

- End date: the period ends at 6 pm on the first subsequent business day.

Therefore, in 2020, the dates will be:

Statement	Inicial date	Final date
Annual CBE	Feb-17-2020	Apr-06-2020
Quarterly CBE Base-date March 31	Apr-30-2020	Jun-05-2020
Quarterly CBE Base-date June 30	Jul-31-2020	Sep-08-2020
Quarterly CBE Base-date September 30	Nov-01-2020	Dec-07-2020

By not presenting the required information or providing false, incomplete, incorrect or out of date information, individuals and companies are exposed to fines ranging from BRL 2500 to BRL 250 thousand.

Organizing information for filing the statement

With CBE Annual presentation period approaching, it is important that individuals and legal entities organize the documentation that will assist in completing the statement.

The essential document is the Balance Sheet, as it contains information, such as the total value of shareholders' equity, total assets and liabilities, profit reserves, the result for the year, among others.

The point of attention related to this document is the following: if the company changes results of the balance sheet after the filling of the CBE, which can happen after an audit, for example, it will be necessary to send a rectification of the declaration to the Central Bank.

Other important documents to compose the CBE are: list of assets such as vehicles, real estate, other goods and rights held abroad, position on equity interest and investments, proof of deposits (transactions related to purchase, sale, transfers, net income received), foreign exchange contracts with remittances abroad, etc.

The supporting documents regarding the assets stated in the CBE must be kept for five years, during which time they can be requested for verification by the Central Bank.

Assistance for the preparation of CBE

The list of required information and the technical terms used make the obligation complex. Considering the possibility of a high fine for errors, omissions, etc., when filling out, it is recommended to rely on the support of specialists.

Domingues e Pinho Contadores has departments dedicated to guiding clients who must issue the Quarterly and Annual CBE.

DPC Individuals Income Tax department assists the client in the preparation of the CBE, from the document organization phase to the transmission of the statement, valuing personalized service and the discretion normally required by this declarant profile.

The Bacen department, on the other hand, offers services related to statements and records (CBE, RDE-IED, RDE-ROF, DEF and Statement of Foreign Capital Census in Brazil) to companies of all sizes and segments, in order to ensure that the advised legal entities remain in full compliance with the Central Bank of Brazil.