During the period from February 17, 2025 to April 5, 2025, Brazilian tax residents — both individuals and legal entities — that held assets abroad with a total market value equal to or greater than USD 1,000,000.00 (one million U.S. dollars) as of December 31, 2024 are required to file with the Central Bank of Brazil (Banco Central do Brasil – Bacen) the Annual Declaration of Brazilian Capitals Held Abroad (Declaracao Anual de Capitais Brasileiros no Exterior – "DCBE").
To facilitate understanding, we have prepared a basic guide to the DCBE with reference date of December 31, 2024, in accordance with the Filer's Manual and the applicable regulatory framework:
Procedure: Online, directly through the Central Bank of Brazil's website (www.bcb.gov.br).
Filing Deadline: by April 5, 2025 (Saturday).
It should be noted that the Central Bank of Brazil recently published an update to the DCBE Filer's Manual, amending the final filing deadline, which was extended to April 5, 2025.
Reportable Assets: Brazilian capitals held abroad include amounts, assets, rights, and assets of any nature held outside Brazil by residents.
Minimum Threshold: assets and rights held abroad whose combined values total an amount equal to or greater than US$ 1,000,000.00 (one million U.S. dollars), or its equivalent in other currencies, as of December 31, 2024.
Responsible Party: The party responsible for providing the information is the individual or legal entity resident in Brazil, as defined by applicable tax legislation, that holds assets and rights abroad, or their legal representative. With respect to assets held through Brazilian Depositary Receipts ("BDRs") and investment funds with investments abroad, the responsible parties for providing the information are the depositary institutions and the fund administrators, respectively.
Penalties: The penalties applicable to those who fail to file the DCBE within the stipulated deadline and under the stipulated conditions vary according to the infraction committed, as follows:
- Filing a registration or declaration after the deadline: 1% (one percent) of the value subject to registration or declaration, capped at R$ 25,000.00 (twenty-five thousand reais). For delays of 1 to 30 days, the fine will be reduced to 10% of that amount. For delays of 31 to 60 days, the fine will be reduced to 50%;
- Providing incorrect or incomplete information: 2% (two percent) of the value subject to registration or declaration, capped at R$ 50,000.00 (fifty thousand reais);
- Failure to register, failure to file a declaration, or failure to present supporting documentation for information provided to Bacen: 5% (five percent) of the value subject to registration or declaration, capped at R$ 125,000.00 (one hundred and twenty-five thousand reais);
Providing false information in a registration or declaration: 10% (ten percent) of the value subject to registration or declaration, capped at R$ 250,000.00 (two hundred and fifty thousand reais).
With respect to infractions 1, 2, and 3 above, the fine may be increased by 50% if the responsible party fails to make, correct, or supplement the registration or declaration when requested by Bacen.
Document Retention Period: Those responsible for providing information on Brazilian capitals held abroad must retain the supporting documentation for the information provided, for a period of 10 years from the declaration reference date, and make it available to Bacen upon request.
The Estate and Succession Planning team at FreitasLeite remains available to assist with the filing of the DCBE and to answer any questions on the subject.
