Brazil discusses MEI tax regime updates and revenue limit increases

In Brasília, government officials, lawmakers, and industry representatives met to discuss the future of the Microentrepreneur Individual (MEI) regime and the Simples Nacional tax system. A central theme was the need for a more balanced transition between tax categories to prevent a ‘tax precipice,’ where business growth leads to sudden, prohibitive increases in tax burdens.

Proposed legislation aims to increase the MEI annual revenue limit from R$ 81,000 to R$ 110,000 in 2027 and R$ 140,000 in 2028. Representatives from FENACON and the Sistema Comércio advocated for these updates to be adjusted for inflation to ensure that nominal revenue increases do not unfairly push businesses into higher tax brackets without real growth.

Additionally, Minister Paulo Pereira highlighted the expansion of the Contrata+Brasil platform, which seeks to connect public services with entrepreneurs. The platform will integrate services from institutions such as Banco do Brasil, Caixa Econômica Federal, and the INSS to support small and medium-sized enterprises and the 5.9 million registered MEIs.