Such DCBE, which is ruled by the Decree-Law No. 1,060/1969, as amended, Provisional Measure No. 2,224/2001, as amended, Resolution from the National Monetary Council (“CMN“) No. 3,854/2010, as amended, and Brazilian Central Bank (“BACEN“) Circular No. 3,624/2013, as amended, is mandatory for Brazilian residents (individuals or legal entities) which held assets (i.e., goods and/or rights) abroad in the total amount equal to or superior than one hundred thousand United States dollars (US$ 100,000.00), or its equivalent in other currencies, on the base date of December 31, 2019. In this sense, if the sum of the assets on such base date does not reach such amount, it is not necessary to submit the DCBE.
The DCBE shall comprise the following assets, provided that the above requirements are fulfilled: (i) shares traded in the stock exchange; (ii) BDRs; (iii) manual exchange; (iv) commercial credits (intercompany or non-intercompany); (v) depositary receipts (Brazilian or non-Brazilian company); (vi) demand and term deposits; (vii) derivatives (futures, swaps and options); (viii) companies – participation in the share capital; (ix) loans (intercompany or non-intercompany); (x) investment funds; (xi) real estates; (xii) other rights, including other assets, tax credits (receivables), other rights or receivables, dividends and other receivable reimbursements, virtual coins, pensions, wages, insurances, incurred claims and indemnifications to receive, and trusts or foundations; and (xiii) debt securities (intercompany or non-intercompany).
The non-observance to the deadline above, as well as the submission of the DCBE with error or defect, or the failure to submit the DCBE, may result in the application of penalties by BACEN, according to BACEN Circular No. 3,857/2017, as amended.
It is important to emphasize that, in the case of Brazilian residents with assets abroad totalizing amount equal to or superior than one hundred million United States dollars (US$ 100,000,000.00), or its equivalent in other currencies, on the base dates of March 31, June 30 and September 30 of each year, a quarterly declaration of Brazilian capital abroad (“Quarterly Declaration“) shall also be required, respectively, in the following terms: from April 30 until June 5, at 6:00 pm; from July 31 until September 5, at 6:00 p.m.; and from October 31 until December 5, at 6:00 p.m., or the first subsequent business day, if such dates coincide with days in which there is no working hours in BACEN, or in which the working hours ends before 6:00 p.m.