Brazil moves to raise Micro‑entrepreneur (MEI) income limit to R$140k

The Brazilian government is preparing a set of measures to update the tax regime for micro‑entrepreneurs. Minister of Planning Bruno Moretti said the annual revenue ceiling for the Micro‑empreendedor Individual (MEI) will be raised from the current R$ 81 000 to a range of R$ 130 000‑140 000, with the change to be phased in between 2027 and 2028. The proposal also seeks to double the number of employees a MEI may hire, from one to two.

In the Chamber of Deputies, a special commission will debate the same MEI ceiling and a revision of the Simples Nacional tax regime, with legislators proposing to lift the Simples cap from R$ 4.8 million to about R$ 8 million. Business associations have urged that the adjustment be applied to the whole Simples system, not only to MEIs.

Separately, the federal government announced a debt‑refinancing scheme for indebted MEIs in the state of Espírito Santo, allowing discounts of up to 70 % and repayment over 12 years, while also planning to raise the MEI limit to R$ 110 000 in 2027 and R$ 140 000 in 2028. All proposals await approval by Congress.