News and deadlines for submitting Foreign Assets statement for Brazilian Central Bank and Individual Income Tax Return 2023

In brief 

Brazilian taxpayers can already submit their Declaration of Foreign Assets to Brazilian Central Bank (the so called “DCBE”), which is due on April 5, 2023 (until 6pm). The late filing of the declaration, as well the filing error or failure to deliver the declaration, may give rise to application of penalties to the declarant by Brazilian Central Bank.

In more detail 

The declaration shall be filed by individuals or legal entities resident, domiciled or headquartered in Brazil, with foreign assets in the amount equal to or greater than: (i) USD 1,000,000.00 (one million dollars) on 12.31.2023 and (ii) USD 100,000,000.00 (hundred million dollars) on March 31st, June 30th and September 30th of each year base. 

The new Manual of the Declaration, released in 2023, indicates the following points of attention for individuals who own at least 10% interest in foreign companies and foreign investment funds: (i) Tab “Declarant”, question “Does the company perform transactions almost exclusively with individuals or companies not resident in Brazil?”, (ii) Tab “Assets”, list of foreign companies, question “Does the company perform transactions almost exclusively with individuals or companies resident in countries other than the selected country?” , (iii) Economic activity of the foreign company, (iv) Companies controlled by the foreign company and (v) Breakdown of results for the year.

The Individual Income Tax Return 2023 (calendar year 2022) shall be filed by Brazilian tax residents by May 31, 2023.