The Brazilian Federal Revenue has clarified that allowances given by parents to their children are exempt from income tax and do not count towards any increase in wealth. This announcement counteracts claims from some experts who suggested that these funds could contribute to a person’s taxable wealth. Essentially, the advice to parents is that they need not worry about tax implications for these allowances, which are typically given for small expenses such as snacks and outings.

Additionally, the issue of alimony is addressed, with the Brazilian Supreme Federal Court (STF) having ruled that alimony payments are also exempt from income tax for recipients. Previously, there was a tax liability on amounts received by children and spouses, but this has been overturned. However, recipients must still declare these amounts if they are required to file a tax return, reminding beneficiaries of their ongoing tax responsibilities despite the exemption.

This clarification serves to alleviate concerns among parents about potential tax liabilities from routine financial support to their children. It emphasizes the Brazilian government's intent to support family economics by relieving some of the financial burdens associated with standard familial obligations.