On July 30, the Brazilian National Monetary Council (“CMN”) published Resolution No. 4,841 of 2020 amending rules related to the Annual Statement of Brazilian Capital Abroad (“CBE”) and the declaration referring to deposit accounts in BRL of residents abroad.
Both changes will take effect as of this year’s September 1st.
The Resolution increased the minimum value of assets abroad that needs to be declared within CBE. The minimum mandatory value went from US$ 100,000 to US$ 1,000,000, declared by individuals and companies.
Thereafter, Brazilian residents who have investments located abroad in which the assets totalize less than US$ 1,000,000 will not be required to prepare the CBE statement.
As published by the Brazilian Central Bank (“BC”), capital located abroad include assets, rights, financial instruments, foreign currency deposits, deposits, real estate, interests in companies, stocks, bonds, commercial credits, among others.
The aforementioned Resolution ends a 16 years’ period in which the CNM did not change the statement’s mandatory minimum value.
Since 2004, when the amount of US$ 100,000 was defined, until 2019, the number of taxpayers who were required to make the CBE declaration increased from 20,000 to 64,000.
According to the head of the BC Statistics Department, Fernando Rocha, this increase was related to a growth in low value statements.
Another topic changed by the Resolution concerns transactions made in deposit accounts in BRL by individuals and/or legal entities resident, domiciled and/or headquartered abroad.
With the change, the minimum value of transactions of this nature that need to be stated to the BC changed from BRL 10,000 to BRL 100,000.
According to Fernando Rocha, these changes reduce the costs regarding the bureaucratic administration. At the same time, the changes do not deprive the Public Administration of inspecting these amounts, since it has other means to obtain information of this nature according to Rocha’s view.
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Published on July 31st, 2020