News and deadlines for submitting Individual Income Tax Return and Foreign Assets statement for Brazilian Central Bank – 2021

Brazilian taxpayers can already submit their Declaration of Foreign Assets to Brazilian Central Bank (the so called “DCBE”), which is due on April 5, 2021. The declaration shall be filed by individuals or legal entities resident, domiciled or headquartered in Brazil, with foreign assets in the amount equal to or greater than: (i) USD 1.000.000.00 (one million dollars) on 12.31.2020 and (ii) USD 100.000.000,00 (hundred million dollars) on March 31st, June 30th and September 30th of each year base. Please note that until last year this threshold amount was USD 100,000.00 (one hundred thousand dollars) for the annual statement.
 
Besides the information already required by Brazilian Central Bank, for individuals who owns 10% or more interest in foreign companies, this year there are new fields included, requesting information about the decomposition of the company’s results, more specifically it is required the information about (i) the results of non-recurring items, (ii) the results of revaluation of assets or liabilities (ex. impairment) and (iii) the results from exchange variation.
 
The Individual Income Tax return program for calendar year 2020 is also available and the for filing the tax return is April 30, 2021. Among the news disclosed by Brazilian IRS this year it is highlighted:
 
(i) the creation of three specific codes for cryptocurrencies in the assets tab of the return: (i) 81 – Bitcoin cryptocurrency, (ii) 82 – Other crypto currencies of the digital currency type (for instance: Ether, XRP, Bitcoin Cash, Tether, Chainlink, Litecoin, etc) and (iii) 89 – Other crypto currencies (payment tokens);
(ii) the possibility to receive refund by “Payment Accounts” (fintechs, for example);
(iii) the possibility to send information about additional distribution of the decedent’s estate without need to amend Estate Final Tax Return;
(iv) the requirement to declare the amount received as “emergency aid” during the Covid pandemic period as taxable income;
(iv) the possibility to obtain the pre-filled tax return through access to GOVBR;
(v) the possibility to obtain the income information received by dependents, if the declarant has an electronic power of attorney granted by the dependent; among others.
 
We are available for further clarification about the matter.