It’s All About Your Assets

Tax residents of Brazil must report assets to the federal revenue service (Receita Federal) and the Central Bank (BACEN). That’s done in two separate declarations: Declaração do Imposto sobre a Renda (IRPF) and Declaração de Capitais Brasileiros no Exterior (CBE).

In general, tax residents who earn more than BRL$28,559.70 in taxable income have to file the IRPF with the Receita Federal by the end of April. In addition to the previous year’s income, you must include detailed information about your global assets existing as of December 31.

Be prepared to describe the type (e.g., real estate property or company membership interest), country, and value for each asset. Amounts must be in Real (BRL) according to specified exchange rates and respect historical or current value reporting rules.

Those who had at least US$1,000,000.00 in assets outside Brazil on December 31 of the prior year must also file the CBE. Like the IRPF, the CBE is filed yearly, but with BACEN and by April 5. Only assets that are not in Brazil matter here.

The reporting requirements of the CBE include country, currency, value, and how much was earned in interest or profits. The value is based on the current value as of the end of the previous year. If you’re reporting a company in the CBE, be prepared to include your ownership percentage.

For Brazil, these declarations are all about fighting tax evasion. But for filers, it’s all about disclosing assets.