Declarations to de Central Bank
Individuals and legal entities must fill returns to the Central Bank of Brazil, when they take part in transactions that involve capital remittance abroad or foreign capital receipt.
Get to know more about these obligations and contact Dutra Business Management if you have any questions and to help you filling such returns:
Brazilian Capital Held Abroad (English version for CBE – Capitais Brasileiros no Exterior)
CBE (Brazilian Capital Held Abroad) are amounts of any nature kept outside the country by Brazilian residents. They include assets, rights, financial instruments, cash, deposits, real estate properties, shares in companies, stocks, securities, business credit etc. These capital must be declared to the Central Bank, annually or quarterly, according to its classification. The declaration is required from entities and individuals who have residence, domicile or business office in Brazil, which detain, outside de country, assets that represent:
- Equal or higher amount than US$ 100,000, or the equivalence in other currencies, at 31st December of each year – subject to annual CBE fulfillment.
- Equal or higher amount than US$ 100,000,000, or the equivalence in other currencies, at 31st March, 30th June and 30th September of each year – also subject to quarterly CBE fulfillment.
The penalty for not filling the CBE return timely or in further cases provided on the legislation varies from R$ 2,500 to R$ 250,000. In some cases it can also be increased in 50%.
Foreign Direct Investment (English version for RDE-IED – Investimento Estrangeiro Direto)
The Eletronic Declaratory Register (RDE) is a system provided by Central Bank to register foreign money in the country. The RDE-IED (Foreign Direct Investment) touches the register of foreign direct investment inside the country, that is the shares and stock in Brazilian companies detained by foreign shareholders or members. What distinguishes a direct investment is the intention of long term investment and the acquisition of such investment out of the organized market of over-the-counter and stock exchange.
All of the corporate events must be timely declared, such as: inclusions and amendments of shareholders position, subscription and payment of capital, profits distribution and interest on equity, ownership assignments and reorganizations.
All of the companies with foreign shareholders must, until March 31st of each year, update the shareholders’ position as at December 31st of the previous year.
If the company accounts equity or assets equal or higher than BRL 250,000,000, it must also fill its Financials quarterly, reporting the owners’ capital, income or loss, distributed profits and company value.
Financial Ooperations Register (English version for RDE-ROF – Registro de Operações Financeiras)
The RDE-ROF – Financial Operations Register covers financial transactions involving foreign capital, in other words, those related to an external credit granted to individual and entities who have residence, domicile or business office in Brazil, as well as operating leases, lease, freight and charter services, rights on intellectual property (royalties). This modality includes, for example, direct loan, loans with related companies abroad, export financing, anticipated payments to export and other financing modalities originated from abroad.
The transaction must be registered in the execution of the agreement, before the first remittance of cash, and must include a payment schedule. Amendment events that may occur during the term of the agreement must also be reported, for example: principal and interest payment, payments made abroad, discounts and debt forgiveness, new agreements, etc.
Once the cash is sent to Brazil, the goods have cleared customs or the service is provided, any amendments to the due date or financial conditions (renegotiation) as well as a debtor modification (debt assumption) are a responsibility of the original beneficiary, who must report them timely in RDE-ROF, as a new register.
By Tássia Warken
