CBE 2019 - Brazilian capital abroad must be informed to the Central Bank

As of February 15, 2019, the period to file the Statement of Brazilian Capitals Abroad (CBE), required annually by the Central Bank of Brazil (Bacen), referring to the base date of December 31, 2018, will begin. Taxpayers may transmit it until 6:00 pm on April 5, 2019.

All legal entities and individuals residing in Brazil holding securities, assets, assets and/or rights abroad in amounts equal to or greater than USD 100,000.00, or its equivalent in other currencies, are required to provide the statement.

The electronic form covers information on the following goods and rights:

i. warehouse;

ii. loan in currency;

iii. financing;

iv. financial leasing;

v. direct investment;

vi. portfolio investment;

vii. application in derivative financial instruments; and

viii. other investments, including real estate and other assets.

Those responsible for filing the CBE Statements shall keep the supporting documentation of the information provided for a period of five (5) years long from the its base date to present to Bacen, if requested.

We emphasize that not filing the CBE, filing it after deadline, and/or providing incorrect, incomplete, or false information may lead to penalties applied by the Bacen. In addition, the CBE does not replace the Individual’s Income Tax Statement (DIRPF) that the alien residing in Brazil is required to annually file by April 30 of that year.