The Brazilian government is stepping up efforts to support microentrepreneurs as it has introduced significant changes to theMicroempreendedor Individual (MEI) framework and broader tax reform. This move aims to create more favorable conditions for small businesses and adapt them to new taxation structures, which have sparked both hope and concern within the sector.
Recently, the Comissão de Indústria, Comércio e Serviços da Câmara dos Deputados approved adjustments to the Estatuto da Micro e Pequena Empresa, facilitating the newly ratified tax reform associated with Emenda Constitucional 132. This significant reform replaces the existing tax framework under the Simples Nacional— which currently encompasses several taxes such as ICMS (Imposto sobre Circulação de Mercadorias e Serviços) and PIS (Programa de Integração Social)—with two new taxes: the Imposto sobre Bens e Serviços (IBS) and the Contribuição de Bens e Serviços (CBS).
According to Deputy Jorge Goetten (Republicanos-SC), who sponsored the approved changes, these alterations aim to reconcile the introduction of the new taxes with the existing legislation concerning the Simples Nacional. He stated, “This allowance enables the IBS and CBS to be subject to the same rules and limits as the Simples Nacional,” raising the limit for ICMS and ISS (Imposto Sobre Serviços) collection from R$ 3.6 million to R$ 4.8 million as part of the proposed restructuring.
A positive aspect of the legislation also mentioned was the extension from one month to three months for micro and small businesses with tax debts to notify Receita Federal (Brazil's Federal Revenue). Goetten affirmed, “This minor adjustment allows them a minimum time to align their fiscal situation without risking exclusion from the Simples Nacional.”
Other elements of the reform require mandatory issuance of tax receipts for all transactions of individual microentrepreneurs (MEI), which previously was only required for sales to businesses. This change, according to experts, is poised to increase accountability and compliance among microentrepreneurs.
Among the notable benefits is the recently announced 'Cartão MEI', which offers microentrepreneurs favorable credit terms with lower interest rates than conventional credit cards. The move is seen as part of the government's initiative to help SMEs access financial resources more effectively. “The Cartão MEI allows more flexibility and is set to boost the operations of small businesses,” remarked Laura Alvarenga, financial expert.
To qualify for the Cartão MEI, entrepreneurs must maintain regularization as MEI and have active CNPJ (Cadastro Nacional da Pessoa Jurídica). The card boasts no annual fees and offers exclusive checking accounts for conducting business transactions, underscoring the initiative's goal to facilitate financial management among microbusiness owners.
But it’s not all favorable news; the recent tax changes have also brought restrictions, including the exclusion of several professions from the MEI framework deemed to require stricter regulatory oversight. Professions such as medicine, law, and engineering can no longer opt for MEI due to the necessity of maintaining rigorous professional standards and certifications.
These exclusions are aimed at enhancing compliance and accountability, but come with risks for workers needing to transition to traditional business structures like Microempresa (ME) or Empresa de Pequeno Porte (EPP), potentially facing increased tax burdens and bureaucratic hurdles.
José Constantino de Bastos Júnior, who emphasizes the need for protective laws for micro and small entrepreneurs, reminds us of these shifts. He pointed out, "There is need for new legislation to guarantee certain protective rules akin to those applied to the MEI based on minimizing regulatory burdens on nanoentrepreneurs." He highlighted the importance of providing adequate legal frameworks for entities engaging with less than R$ 40.5 thousand annually.
Despite the pressures posed by these regulatory hurdles, the updated framework is meant to solidify the existence of the nanoentrepreneur category, which now includes service providers like app-based drivers. They can earn significant income but require simplified taxation frameworks.
Looking forward, the Brazilian government is expected to continue fine-tuning the regulations affecting micro and small enterprises, especially as pressures mount to adapt to fiscal compliance without imposing onerous requirements. This dynamic evolution, if successful, could cement the role of microentrepreneurs as fundamental contributors to Brazil’s economy.