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How the Federal Revenue Service will interpret transactions via PIX for “your mother” or other family members without falling into the income tax net

Written by Paulo Nogueira
Published 12/01/2025 às 21:47
Updated 16/01/2025 às 16:04
A black woman receiving money from her son, but with an expression of concern due to Brazil's high tax burden. In the background, an old building with the words RECEITA FEDERAL written on it in a dramatic tone.

understand how the IRS monitors transfers via Pix for family members, like your mother, and what precautions to take to avoid problems with the income tax, including the characterization of donations and possible penalties.

*ATTENTION! THIS ARTICLE WAS WRITTEN BEFORE THE REPEAL OF THE PIX MONITORING LAW BY THE MINISTER OF FINANCE FERNANDO HADDAD*

O Pix brought practicality to sending money, but also caught the attention of IRS for undeclared financial transactions. Any significant transfer of funds may be interpreted as taxable income ou donation, depending on the context.

Frequent or high-value transfers to family members, such as your mother, may be monitored. This does not automatically mean that you will be charged income tax, but the IRS has specific criteria to determine whether there are amounts that should be taxed.

Donations or Income? Understand the difference

The IRS distinguishes two types of movements between family members:

  • Donations: Values ​​sent without consideration. They are subject to the state ITCMD (Tax on Transmission Causa Mortis and Donation), and not to the income tax.
  • Taxable income: If the amount is disguised remuneration, such as regular payments for services, it can be classified as income and taxed on income tax.

Practical example

If you transfer R$2.000 monthly via Pix for your mother to help her with expenses, it can be considered donation. However, if these amounts are recurring and high, the IRS may question the origin and nature of the money, applying the ITCMD in accordance with the state rates.

If your mother provides some service or works formally for you, the values ​​can be interpreted as taxable income, requiring tax withholding.

ATTENTION: THE FEDERAL REVENUE IS INSPECTING YOUR PIX AND CREDIT CARD EXPENSES!

How to avoid income tax problems?

To avoid falling into thin mesh, follow these practices:

  • Declare donations on your income tax: If the donation exceeds the exemption limit, it must be reported in the specific field of the declaration.
  • Use separate accounts: Avoid mixing accounts personal and business, as this may confuse the inspection.
  • Document the transfers: Describe the purpose on the receipt Pix and keep records of movements.
  • Avoid unjustified high movements: Large amounts may raise suspicions.

The monitoring of Pix from IRS does not seek to penalize transfers to family members, but to ensure that significant amounts are declared correctly. The key to avoiding problems with the income tax is transparency and proper recording of every move.

Source: Federal Revenue – Simple National Table

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Placid
Placid
13/01/2025 07:45

In short, now the big part is coming

Rodrigo
Rodrigo
13/01/2025 11:33

Negative. I have received amounts much higher than 2000 or 5000 from my mother, the IRS never bothered me and I never declared income tax, I am unemployed.

Leo
Leo
In reply to  Rodrigo
13/01/2025 11:42

That was in the past, right? Genius!

Paulo Nogueira

An electrical engineer graduated from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), I worked for several years in the areas of offshore oil and gas, energy and construction. Today, with over 8 publications in magazines and online blogs about the energy sector, my focus is to provide real-time information on the Brazilian employment market, macro and micro economics and entrepreneurship. For questions, suggestions and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes for this purpose.

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