A few months ago we wrote about Brazil’s Central Bank declaration known as the CBE or Capitais Brasileiros no Exterior. This yearly filing applies not only to Brazilians but also to foreign residents, including American individuals and companies. Click here to read the article if you missed it.

In July of this year, the Central Bank issued an update, raising the CBE filing threshold. Effective as of September 1, individuals and legal entities holding US$1,000,000 or more in assets outside Brazil must comply. Previously, the minimum required to file was US$100,000.

By increasing the threshold, the government hopes to reduce filings by roughly 65%. Yet despite such a large decrease in the number of filings, the change is expected to have a minimal impact on the combined value of all declared assets. In fact, the difference likely won’t even reach 3%.

All the other rules are the same. For example, you have to be a resident of Brazil at the end of the year; the filing deadline remains April 5; you’re still required to provide detailed information about your assets, including the value and type; and the penalties and fines continue unchanged.

Just make sure you double-check your residency status and financial statements at the end of 2020. Thanks to the change, you might be able to avoid filing the CBE declaration this year. Then again, if you do have to file, make sure you do it on time. Otherwise, it’ll cost you.