In June 2022, the Federal Supreme Court (STF) ruled that Income Tax (IRPF) cannot be levied on alimony or spousal support. This decision stops the Federal Revenue Service from collecting such taxes and opens the door for taxpayers to claim refunds for amounts paid over the past five years. The ruling stemmed from a Direct Action of Unconstitutionality (ADI) 5422, brought by the Brazilian Institute of Family Law (IBDFAM), challenging specific provisions in Law No. 7,713/1988 and the Income Tax Regulation of 1999.

The Court concluded that alimony is not income but a necessary amount for the subsistence of the beneficiary, distinguishing it from an increase in assets. The ruling, however, does not affect the payer’s right to deduct alimony from their Income Tax.

Despite an appeal from the Attorney General’s Office (AGU) to limit the ruling’s retroactive effect, the Court upheld that the unconstitutionality of the tax should apply retroactively from the time the law was enacted. This means that beneficiaries can seek refunds for taxes paid on alimony since June 2017, with corrections at the SELIC rate.

Although the ruling specifically applies to judicially determined or approved alimony, it could also extend to mutually agreed-upon support without judicial intervention. If you are a beneficiary of alimony, it is advisable to seek refunds for overpaid taxes. 

For legal assistance, Böing Vieites Gleich Mizrahi Rei Advogados offers specialized expertise in both Family and Tax Law. You can contact Priscilla Iglesias, Maier Böing, or Alan Medina at the provided email addresses: piglesias@boingvieites.dgrafo.com and amedina@boingvieites.dgrafo.com; or contato@boingvieites.dgrafo.com.