Brazil pushes update to Simples Nacional tax regime for micro‑businesses

Brazilian lawmakers and business groups are debating a major update to the Simples Nacional tax regime that serves millions of micro, small and medium enterprises. In a session of the Chamber of Deputies on 1 July, representatives of entities such as FecomercioSP, FACEB, CACB and the Ministry of Entrepreneurship highlighted that the current revenue thresholds, unchanged since 2018, have been eroded by inflation of 55 % and are forcing many firms out of the regime.

Legislators are reviewing Project of Complementary Law (PLP) 108/2021, which proposes to raise the ceiling for the Micro‑entrepreneur Individual (MEI) from R$ 81 000 to R$ 110 000 in 2027 and R$ 140 000 in 2028, and to increase the limits for micro‑enterprises to R$ 869 000 and for small businesses to R$ 8.69 million per year. The changes aim to preserve competitiveness, stimulate investment and avoid penalising growing businesses.

Separately, the tax authority plans to introduce a “Simples Nacional Híbrido” option, with the first selection window opening in September 2026 and effective from January 2027. This hybrid regime would let eligible firms segregate certain taxes while keeping others under the unified DAS system, requiring detailed credit simulations for each taxpayer.