DAA, DCBE and Beyond: Obligations of Brazilian Residents with Assets Abroad

The management of international wealth by Brazilian tax residents requires heightened attention to tax and regulatory obligations. Brazilian legislation, which is constantly evolving and aligned with global transparency standards, imposes a series of reporting requirements designed to identify and tax assets held outside the country.

Below are the main obligations applicable to individuals and entities with international investments or structures, such as bank accounts, offshore companies, trusts, and real estate.

Individual Income Tax Return (DIRPF)

The DIRPF is the most common tax obligation and applies to the majority of Brazilian tax residents, especially those holding assets abroad.

Taxpayers must report all foreign assets (bank accounts, investments, real estate, equity interests, etc.) in the “Assets and Rights” section, as well as all income earned, in the appropriate income schedules.

Brazilian Capital Abroad Declaration (DCBE)

The DCBE is a statistical and regulatory obligation aimed at compiling Brazil’s external sector statistics and must be filed on an annual or quarterly basis.

• Annual DCBE – Mandatory for Brazilian tax residents who hold assets and rights abroad with a total value equal to or exceeding USD 1,000,000 (one million US dollars) as of December 31 of each year;

• Quarterly DCBE – Mandatory for Brazilian tax residents who hold assets and rights abroad with a total value equal to or exceeding USD 100,000,000 (one hundred million US dollars) as of March 31, June 30, and September 30.
  

Other Obligations and Global Transparency Regimes

In addition to Brazilian requirements, investors with assets abroad are subject to an international transparency framework, which may include:

• FATCA (Foreign Account Tax Compliance Act) – U.S. legislation requiring foreign financial institutions to report information on accounts held by U.S. taxpayers (including green card holders and U.S. persons) to the Internal Revenue Service (IRS);

• CFC (Controlled Foreign Corporation) Rules – Under Law No. 14,754/2023, the Brazilian CFC rules were significantly amended, requiring offshore companies to prepare financial statements in accordance with Brazilian accounting standards (BR GAAP).
  

Aurora works alongside strategic partners to provide comprehensive and integrated advisory services, ensuring that all obligations — from proper reporting under the DIRPF and DCBE to corporate accounting requirements — are met accurately and within the applicable legal deadlines.