Brazil moves to raise MEI revenue ceiling to R$140,000

The federal government has sent a bill to Congress to increase the annual revenue ceiling for Microempreendedor Individual (MEI) from the current R$81,000 to R$110,000 in 2027 and to R$140,000 in 2028. The proposal also allows MEIs to hire a second employee, up from the present limit of one.

Sebrae estimates the change could generate at least 600,000 new jobs if 5% of the 13 million MEIs take advantage of the higher limit. The same analysis expects higher tax collection but also a fiscal revenue loss of about R$8.1 billion over three years, with a projected R$1.57 billion loss in 2027 alone.

The reform is linked to Brazil’s broader tax overhaul that will introduce the IBS and CBS taxes and alter credit‑taking rules. Studies show that many electronic invoices (66.2%) may lack the required fields for the new credit system, creating compliance challenges for firms.

Local initiatives are being launched to help MEIs adapt. In Campos Novos (SC) the free “MEI‑Up” program offers an 11‑month training track. In Paraíba, the “Desenrola MEI” scheme provides up to 70% discounts on interest and penalties and flexible repayment. Boa Vista’s AME BV is holding a credit‑renegotiation fair for indebted micro‑entrepreneurs. Additional workshops on the tax reform and its impact on freelancers and small businesses are taking place in São José do Seridó, Itajubá and other municipalities.