Individuals or legal entities resident domiciled or headquartered in Brazil holding on 12.31.2022, assets or rights of any nature abroad totaling US$1,000,000.00 (one million US dollars) or its equivalent in other currencies, must inform such assets and rights to the Brazilian Central Bank through the “Declaração de Capitais Brasileiros no Exterior – DCBE 2023”.

The deadline for filing the DCBE 2023 is 6 pm on April 05, 2023.

The failure to provide the required information, as well as the provision of false, incomplete, incorrect information, or information outside the deadlines and conditions set forth in the regulations in force, will be subject to a fine of up to 10% (ten percent) of the amount subject to the declaration, up to the limit of BRL250,000.00.

As of 01.01.2023, companies incorporated in the British Virgin Islands – (“BVI”) will be required to file their balance sheets with the registrar on an annual basis, in accordance with the new legislation in force.

It is strongly recommended that legal entities, such as Private Investment Company – PIC and International Business Company – IBC, have their financial statements prepared by a qualified professional, so they can meet the deadlines relating to the above-mentioned obligations.