Brazil debates easing nano‑entrepreneur rules as micro‑entrepreneurs face higher contribution fees

Federal Deputy Adriana Ventura (Novo‑SP) has introduced Decree Legislative Bill PDL 851/2026 seeking to suspend two requirements for the newly created "nano‑entrepreneur" category – registration in the CNPJ and mandatory invoicing – that were set to take effect in January 2027. The proposal would keep identification limited to the CPF, arguing that the added bureaucracy could deter informal workers from formalising. Nano‑entrepreneurs are individuals earning up to R$ 40.5 thousand annually and include artisans, street vendors and other small‑scale service providers.

At the same time, the recent rise of Brazil’s minimum wage to R$ 1,320 triggers an automatic increase in the monthly tax guides for all micro‑entrepreneurs (MEI). Their Social Security contribution rises to R$ 66, with additional small municipal and state taxes applied depending on activity. The higher payments require cash‑flow adjustments for millions of autonomous workers and aim to keep the social‑security fund aligned with inflation.

Both measures are part of the broader tax‑reform implementation and will be debated in the National Congress before any changes take effect.