Individuals and legal entities residing, domiciled, or that are headquartered in Brazil (including foreigners, according to the applicable criteria of the tax legislation) must present to the Brazilian Central Bank a declaration of assets and funds held overseas (“Declaration of Brazilian Capital Abroad”), according to Resolution 3854 of May 27, 2010, and Circular 3624 of February 6, 2013.

1. Form of provision of information. The periodicity of provision of information varies depending on the amount of assets and funds held overseas:

The declaration is mandatory to all individuals and legal entities that held assets and funds abroad in an amount equal to or higher than USD 1 million, or the equivalent amount in another currency on the base date of December 31, 2020, and the declaration must be presented up to April 5, 2021 (until 6:00 PM) (“Annual Declaration of Brazilian Capital Abroad”).

In addition to the Annual Declaration of Brazilian Capital Abroad, the individuals and legal entities holding assets and funds abroad in an amount equal to or higher than USD 100 million or the equivalent amount in another currency must also present the Quarterly Declaration of Brazilian Capital Abroad, as per the schedule below:

(i) with respect to the amounts of funds at March 31, 2021, the declaration must be presented in the period from April 30, 2021 to June 5, 2021 (until 6:00 PM);

(ii) with respect to the amounts of funds at June 30, 2021, the declaration must be presented in the period from July 31, 2021 to September 5, 2021 (until 6:00 PM); and

(iii) with respect to the amounts of funds at September 30, 2021, the declaration must be presented in the period from October 31, 2021 to December 5, 2021 (until 6:00 PM).

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2. Information to be provided. The information to be provided includes data about assets of different natures, such as trade credits (goods and services), financial deposits abroad, investments in derivatives, loans and financial leasing, equity investments, Brazilian Depositary Receipts and  bonds, as well as other investments, including real estate and other assets. The detailed description of the assets to be declared is available only in Portuguese on the Declaration Manual (to access such document click here).

3. Effects. The failure to provide information (or the failure to provide it within the deadline established) as well as the provision of false, incomplete or incorrect information may subject the violator to the imposition of a fine by the Brazilian Central Bank, according to Circular 3857.

Araújo e Policastro team is at your disposal for any further clarification about this matter and to provide all the assistance to comply with such obligation.