Brazil MEI tax regulations and CNPJ cancellation procedures

Microentrepreneurs in Brazil (MEI) face potential exclusion from the Simples Nacional tax system starting January 1, 2027, if they fail to regularize outstanding debts. In 2026, the Receita Federal notified over 404,000 individual microentrepreneurs regarding significant pending issues.

To avoid exclusion, entrepreneurs must respond to notifications sent via the Domicílio Tributário Eletrônico (DTE-SN). Once a formal Exclusion Term is issued, taxpayers have 90 days to settle all listed debts, a period extended by Complementary Law No. 216/2025. Additionally, the Procuradoria-Geral da Fazenda Nacional (PGFN) offers a special negotiation period for debts registered in the Union's Active Debt until September 30, 2026.

For those choosing to close their businesses, the CNPJ can be canceled free of charge through the Portal do Empreendedor. This digital process requires a gov.br account with silver or gold security levels. While the cancellation of a CNPJ is irrevocable, entrepreneurs may legally open new companies in the future. It is important to note that closing a registration does not extinguish existing monthly tax obligations incurred during the period of operation.