Preparation of financial statement for controlled companies abroad– Brazilian Law 14.754/23

The memorandum below is intended for Brazilian tax residents only.

We would like to remind you that starting January 1st, 2024, and based on the new Law 14.754/23, there will be annual taxation of investments in controlled companies abroad. This taxation will be levied on the final profit calculated in the company's balance sheet and, regardless of its availability, at the tax rate of 15%.

Profits must be ascertained in a balance sheet prepared based on accounting principle of BRGAAP for companies located in tax havens or beneficiaries of a privileged tax regime.

Our Group has Brazilian accountants who can assist in the preparation of financial statements in accordance with the accounting rules required by Brazil.

If you wish to obtain a quote for the preparation of a balance sheet, we kindly ask you to send us the following information via email:

- Bank statements of the bank account from January to October 2024

- Bank statements of the investment accounts from January to October 2024

- Bank statement for December 2023

What will define the cost of this service will be the analysis of the accounts’ statements and investment positions, based on the number of transactions, number and complexity of investments, as well as the calculation of losses and gains.

Once we receive the above-mentioned information, we usually revert to you with the cost estimate within 2-3 days.

For the clients, to whom we already provide this service, it is essential to remember that in order for us to guarantee the timely delivery of the balance sheet for presentation in Brazil before the DCBE or DIRPF’s deadlines, we will need to receive the 2024 bank statements by the end of December.

Should you need any further clarifications, please do not hesitate to contact us.

Assure Team