A declaration of assets represents one of the most important and delicate stages in filing your income tax return.
Many taxpayers underestimate the importance of this section, treating it as a mere bureaucratic formality, when in fact it functions as a complete asset portrait that the IRS uses to cross-check information and identify tax inconsistencies.
Errors, omissions or inaccurate information in this part of the declaration often result in retention in the fine mesh, tax assessments and significant fines.
Entrepreneurs, investors and self-employed professionals who accumulate wealth over the years need to master the correct rules and procedures to avoid problems with the tax authorities.
This guide presents everything you need to know about how to declare your assets accurately, completely and strategically, ensuring tax compliance and peace of mind for you and your company.
What is a declaration of assets?
The declaration of assets consists of a detailed record of all the assets that the taxpayer owns on December 31 of the calendar year.
This asset inventory includes real estate, vehicles, financial investments, shareholdings, jewelry, works of art and any other asset of economic value.
The IRS uses this information to monitor the taxpayer's wealth over the years and check whether the growth in assets is justified by the income declared.
When a person acquires high-value assets without declaring proportional income, the tax authorities' automated system identifies the incompatibility and triggers inspection mechanisms.
A declaration of assets also serves as a basis for calculating capital gains on future asset sales, determining the inventory in cases of death and proving the lawful origin of funds in financial transactions.
Companies that maintain strict asset controls make it significantly easier to fill in this section, reducing the risk of errors and inconsistencies that could jeopardize the entire declaration.
Who needs to declare their assets
The obligation to declare assets does not apply to all taxpayers, but to those who meet the criteria established by the IRS for submitting the Annual Income Tax Return.
Individuals who had assets or rights with a total value of more than R$ 800,000.00 (reference value 2025, subject to annual updating) on December 31st of the calendar year must submit a complete declaration, including all assets.
Even taxpayers who do not meet this threshold may be obliged to declare if they meet other criteria, such as taxable income above the exemption limit, rural activity with gross revenue above the established ceiling, or stock exchange transactions.
Entrepreneurs who own shareholdings, shares in companies or holding companies need to declare these shareholdings regardless of their value, detailing the CNPJ, percentage of shareholding and value of the shares.
People who received exempt income, The taxable, non-taxable or exclusively taxed at source above the legal limit also fall under the obligation.
A declaration of assets becomes essential in order to prove the lawful origin of assets and maintain tax compliance with the IRS and other financial institutions.
Which assets should I declare
Tax legislation requires the declaration of practically all assets of economic value that taxpayers own. See the full list of the main assets you should include in your tax return. declaration of assets:
Real estate
- Land, houses, apartments, commercial premises and warehouses
- Declared at acquisition value, including improvements and renovations made
- Never at market value or updated valuation
- Includes properties paid off or financed
Vehicles
- Cars, motorcycles, aircraft and boats
- Declared at the value shown on the purchase invoice or transfer document
Financial investments
- Savings, CDB, investment funds
- Shares, public and private bonds
- Cryptocurrencies and digital assets
- Declared by the balance at December 31
Shareholdings
- Shares in limited companies
- Shares in public limited companies
- Inform CNPJ, percentage of participation and asset value
Valuable movable property
- Jewelry, works of art, antiques and collections
- Only when they exceed R$ 5,000.00 individually
Rights
- Loans granted to third parties
- Advances and credits receivable
- Recoverable amounts of any kind
Assets abroad
- All assets and rights held outside Brazil
- Amounts converted to reais at the dollar rate on the last working day of December
The omission of any asset subject to declaration constitutes a tax infraction punishable by a fine and can characterize tax evasion when the intention to hide assets is proven.
How to declare assets correctly in Income Tax
The process of declaration of assets requires attention to detail and document organization. Follow this step-by-step guide to fill it out correctly:
Step 1: access the Receita Federal program
Download the IRS generator program from the official website (www.gov.br/receitafederal) or use the online version via the e-CAC portal. Log in with your CPF and access code or digital certificate.
Step 2: locate the “Assets and Rights” tab”
In the program's side menu, click on “Assets and Rights”. This section contains all the property information you need to declare.
Step 3: select the asset group and code
The IRS organizes assets into numbered groups. Choose the group that corresponds to the type of asset:
- Group 01: Real estate
- Group 02: Movable property (vehicles, jewelry, works of art)
- Group 03: Shareholdings
- Group 04: Financial investments
- Group 05: Cryptocurrencies
- Next groups: Other types of assets and rights
Within each group, select the specific code that best describes your asset.
Step 4: fill in the “Breakdown” field”
Provide complete and accurate information about the asset:
For real estate: Full address, registration number, total area, date of purchase, CNPJ or CPF of the seller.
For vehicles: Make, model, year of manufacture, license plate, Renavam number.
For shareholdings: CNPJ of the company, full company name, percentage of stake you own.
For investments: Name of financial institution, type of investment, account number.
Step 5: enter the “Situation on 31/12 of the Previous Year”
In this field, enter the value that appeared in the previous year's declaration for this same asset. Maintain historical consistency. If the asset was purchased in the current year, leave this field zero.
Step 6: update the “Situation on 31/12 of the Current Year”
Enter the updated value considering:
- Acquisitions made in the year
- Proven improvements to real estate
- Repayment of financing
- Partial divestitures
Attention: Never update the value of assets by market variation or inflation. The IRS requires that assets remain declared at acquisition cost plus only proven improvements.
Step 7: declare assets acquired during the year
For goods purchased during the calendar year:
- Situation on 31/12 of the previous year“ field: R$ 0,00
- Field “Situation on 31/12 of the current year”: Total acquisition value
Step 8: organize the supporting documentation
Keep them on file for at least five years:
- Deeds and sales contracts
- Purchase invoices
- Proof of payment
- Bank statements
- Property improvement receipts
The IRS can request these documents at any time during the inspection period.
Step 9: review all the information
Before transmitting the declaration, check that all assets are correctly registered, that the values are consistent with the previous year and that there are no omissions. Use the program's “Check for Pending Items” function to identify possible errors.
Step 10: transmit the declaration
After carefully reviewing all the information, click on “Submit Declaration” and wait for the submission receipt. Keep this receipt as proof that you have fulfilled your tax obligation on time.
By following this step-by-step guide, you can ensure that your declaration of assets is accurate, complete and complies with IRS requirements, avoiding future problems with the tax authorities.
What happens if I don't declare my assets
The omission of assets from income tax returns is a serious breach of tax legislation and carries severe consequences.
The Receita Federal cross-references information from various sources, including land registry offices, Detran, financial institutions, stock brokers and even electricity and water consumption data, easily identifying undeclared assets.
When the tax authorities detect the omission, the taxpayer receives an ex-officio notice charging the tax due, plus a fine of 75% to 150% on the amount of the tax, plus interest on arrears calculated at the Selic rate from the date the tax should have been paid.
In cases of proven intent to evade tax, the situation can escalate to the criminal sphere, with the possibility of prosecution for a crime against the tax order, as provided for in the Law 8.137/90, with a prison sentence of two to five years.
The omission also results in immediate registration restrictions: the CPF becomes irregular, preventing the issuance of negative certificates, obtaining bank credit, participating in public tenders, renewing passports and even enrolling in public universities.
Entrepreneurs with irregular CPFs face difficulties signing corporate contracts, opening business bank accounts and representing their companies in commercial negotiations.
The subsequent regularization of the situation does not eliminate the penalties already applied, but only stops the incidence of new interest and fines.
That's why declaration of assets complete and accurate represents not only a legal obligation, but an essential strategy for protecting assets and reputation.
Common mistakes when declaring assets and how to avoid them
Many taxpayers make recurring mistakes that compromise the quality of their tax return and increase the risk of a fine mesh.
- Update asset values to market prices represents the most frequent error: real estate and vehicles must remain declared at their original acquisition value, never by updated valuations or market estimates.
- Omitting improvements to real estate also generates inconsistencies, as renovations, extensions and improvements must be added to the original value of the asset, always with supporting documentation of the expenditure.
- Only declare the financed value of real estate is a serious error: the taxpayer must inform the total value of the property, even if part of it is financed, because the financing represents a debt declared separately on the “Debts and Encumbrances” sheet.
- Not declaring assets received as a gift or inheritance characterizes an omission of assets, even if these assets did not generate taxation at the time of the transfer.
- Providing incomplete or generic data in the breakdown makes it difficult to identify the asset and can be interpreted as an attempt to conceal it.
- Incorrectly converting values of assets abroad generates divergences when the IRS cross-checks information with statements from international financial institutions.
To avoid these problems, maintain detailed asset control throughout the year, recording all acquisitions, sales, improvements and asset movements.
Companies that rely on specialized accounting advice are able to identify and correct inconsistencies before the return is submitted, eliminating the risk of being assessed and ensuring full tax compliance.
Count on CLM Controller for strategic asset and tax management
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Each client has an exclusive account manager who closely monitors the entire evolution of assets, advises on the best way to structure asset acquisitions and disposals, and ensures that all information is declared correctly, avoiding problems with the Internal Revenue Service.
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Talk to an expert from CLM Controller and request a complete diagnosis of your assets and tax situation. Protect your assets with accounting management and maintain your compliance with total security.
