With the growing popularity of Pix, many Brazilians have adopted this form of payment for its speed and practicality. However, the IRS has implemented new monitoring rules that may affect how you declare your financial transactions in your Income Tax. Let’s explore these changes and how you can prepare to avoid problems with the tax authorities.
What Pix is and its popularity
Pix, launched in November 2020 by the Central Bank of Brazil, has revolutionized the way people carry out financial transactions in the country. Its popularity is due to its convenience and speed, allowing payments and transfers to be made in seconds, eliminating the need for intermediaries or long clearing times. In addition, the system has brought financial inclusion to millions of Brazilians who previously had no access to traditional banking services, even facilitating commercial transactions for small entrepreneurs and the self-employed. The fact that it is free for individuals and widely accepted by companies has consolidated Pix as one of the most widely used payment methods in Brazil.
New IRS rules for Pix
With the growing adoption of Pix, the Federal Revenue Service implemented new rules in 2025 to intensify the inspection of financial transactions in Brazil. The main aim of these changes is to prevent practices such as tax evasion and the use of financial transactions for illicit purposes, such as money laundering. The measure also reflects the government’s efforts to adapt to the digital environment and keep up with the digitalization of the economy. Supervision will now be stricter, covering not only high-value transfers, but also patterns of financial transactions that could raise suspicions.
Limits on amounts monitored
RFB Normative Instruction No. 2,219/2024 details the new criteria for monitoring financial transactions by banking institutions.Transfers and payments made via Pix, along with other financial transactions, will now be reported to the IRS if they exceed the following monthly accumulated amounts:
- Individuals: Transactions above R$ 5,000.00 in the monthly total.
- Legal entities: Transactions above R$ 15,000.00 in the monthly total.
These amounts include payments, transfers, deposits and any other registered financial operation. Although the limits may seem high to some, it is important to remember that the main purpose of the measure is to monitor unusual patterns of financial transactions and ensure that all income and expenses are duly declared in the Income Tax.
Impact of the new rules on income tax
Although the use of Pix does not directly generate taxes, the new rules make financial tracking much stricter, increasing taxpayers’ responsibility for declaring their income.
With the IRS monitoring financial movements above the established limits, any discrepancy between the amounts declared and those recorded by financial institutions can result in investigations. This is particularly relevant for self-employed professionals, entrepreneurs and those who receive informal payments, as transfers made via Pix are now a transparent record of their financial activity.
How to declare Pix transactions for income tax purposes
The correct declaration of financial transactions, including those made via Pix, is essential to avoid problems with the tax authorities. Here are some practical guidelines:
- Keep accurate records: Use apps or spreadsheets to organize all financial transactions, including transfers, payments received and expenses incurred. Keep receipts, invoices and transfer receipts to back them up.
- Identify the origin of amounts: Classify transactions to differentiate between exempt and taxable income and movements that do not constitute income, such as transfers between own accounts.
- Declare informal income: Include all sources of income, even those obtained informally, such as freelance services or occasional sales, specifying the source and amounts.
- Consult a professional: In more complex cases, such as high volumes of transactions or doubts about how to categorize income, seek out an experienced accountant or tax law specialist.
Consequences of not declaring correctly
The omission or inadequate declaration of income can have significant implications for the taxpayer. Among the main consequences are:
- Fines and interest: The IRS can impose fines of up to 20% on undeclared amounts, as well as interest based on the Selic rate.
- Fine mesh: Inconsistencies can cause the declaration to be held up for analysis, delaying the refund process and generating the need for detailed proof of the amounts.
- Summons for clarification: In more serious cases, taxpayers may be called upon to provide clarifications and justify their financial transactions to the IRS. This process may involve the submission of documents, bank statements and other evidence which, if not provided or incomplete, may lead to additional sanctions.
Tips for keeping your finances in order
Keeping your finances organized is essential, especially in a scenario of increased fiscal monitoring. Here are more details on recommended practices:
- Organization: In addition to apps and spreadsheets, consider specific financial management tools such as QuickBooks or Mobills, which offer automated features such as categorizing expenses and generating reports. For entrepreneurs, separating personal and business accounts is indispensable.
- Financial education: Invest in courses and content on personal finance, tax planning and investments. Books and expert channels can offer practical tips to improve your relationship with money.
- Transparency: Carry out all transactions in an official manner, using receipts and recording all income, whether from formal work, self-employment or investment income. Transparency protects against future complications, such as fines and tax audits.
Clearing up myths about Pix taxation
With the increased scrutiny, rumors have emerged about the creation of taxes directly associated with the use of Pix. It is important to emphasize that:
- Pix has no additional fees or taxes exclusive to its use, whether for transfers between individuals or payments to companies.
- Monitoring is not limited to Pix; it covers all forms of financial transactions, such as traditional bank transfers (TED and DOC), cash transactions and the use of cards.
- The aim of the new rule is to ensure that income and financial transactions are in line with taxpayers’ tax returns.
The aim of the new rule is to ensure that income and financial transactions are in line with taxpayers’ tax returns
Financial institutions play a crucial role in complying with the new IRS guidelines. They are responsible for:
- Transaction monitoring: The institutions monitor their clients’ financial transactions and identify those that exceed the established limits (R$ 5,000.00 for individuals and R$ 15,000.00 for companies, in the monthly accumulated amount)..
- Sending information: Every month, banks must report consolidated data on financial transactions that meet the criteria established by the Federal Revenue Service..
- Safety guarantee: In addition to reporting the data, banks must ensure that the information is sent securely, preserving customer privacy, in accordance with the rules of the General Data Protection Law (LGPD).
With these responsibilities, financial institutions act as intermediaries between taxpayers and the IRS, ensuring that the system works efficiently and transparently. It is essential that clients understand this role and know that the information reported does not directly imply additional taxes, but rather compliance with tax obligations.
Frequently asked questions
1. Pix is taxed by the IRS?
No, Pix is not directly taxed. What does happen is that financial transactions carried out using this tool are monitored more closely in order to identify possible inconsistencies in the tax return.
2. Which financial transactions must be declared in Income Tax?
All income received must be declared, including salaries, rents, sales of products or services, and other sources of income that exceed the exemption limit set by the IRS..
3. What happens if I don’t declare transactions made via Pix??
If the IRS identifies inconsistencies between the transactions made via Pix and the income declared, you could fall into the fine mesh and be subject to fines and interest on the undeclared amounts.
4. The banks report all my transactions via Pix to the IRS?
Yes, financial institutions must report to the Receita Federal all financial transactions that exceed the monthly limits of R$ 5,000.00 for individuals and R$ 15,000.00 for legal entities.
5. I need an accountant to declare Pix transactions for income tax purposes?
Although it is not compulsory to hire an accountant, the help of a professional can be essential to ensure that your declarations are made correctly, avoiding problems with the tax authorities.
With this information, you’ll be prepared to deal with the IRS’s new monitoring rules on Pix and can avoid complications when declaring your income tax. Keep your finances organized and rely on professional help whenever necessary.
