Brazil government proposes raising MEI revenue ceiling to R$140,000

In Brazil, the Lula administration submitted a legislative project to raise the annual revenue ceiling for Microempreendedor Individual (MEI) from the current R$81,000 to R$110,000 in 2027 and R$140,000 in 2028, and to permit hiring up to two employees. The government estimates the measure will reduce tax revenue by R$1.57 bn in 2027, R$3.15 bn in 2028 and R$3.38 bn in 2029, a total fiscal impact of about R$8.1 bn over three years.

The proposal is being debated in the Chamber of Deputies, where legislators and business groups argue it should be part of a broader update of the Simples Nacional tax regime. The Chamber’s special committee, led by deputy Jorge Goetten, is reviewing the bill and has received calls to raise the Simples thresholds for micro‑enterprises to R$869,000 and for small‑businesses to R$8.69 million.

Separately, the Federal Revenue Service announced that from July new companies, including new MEIs, will receive alphanumeric CNPJ numbers to expand the pool of identifiers. Existing CNPJs remain unchanged, but software and system updates will be required to accommodate the new format.