Brazil Senate advances Microentrepreneur Professional tax scheme for freelancers

The Senate's Human Rights Commission approved a proposal to create a simplified tax regime called Microempreendedor Profissional (MEP) for liberal professionals such as intellectual, scientific, literary and artistic service providers. The MEP regime would impose a fixed 6 % tax on monthly gross revenue, replacing corporate income tax, profit‑share contributions and certain social security obligations.

Eligibility is limited to individuals with annual gross revenue of up to R$120,000, who work without employees or partners and are not involved in other companies. In addition to the 6 % levy, the regime includes monthly payments of IBS, CBS, ICMS and ISS as defined in the law's annex. The executive branch must review the pension contribution every two years and may adjust the rate to preserve balance in the General Social Security System. The bill, originally aimed at architects and engineers, was broadened to all qualifying professions. Senator Laércio Oliveira said the measure fills the gap between the existing Microentrepreneur Individual (MEI) model and micro‑companies, offering a lower tax burden than the Simples Nacional system.