The Brazilian Chamber of Deputies approved an urgency regime for a bill to increase the annual gross revenue ceiling for individual micro-entrepreneurs [1].
This legislative move aims to support millions of small businesses by allowing them to earn higher revenues and adapt to inflation. The change would enable these entrepreneurs to hire more employees, and scale their operations without losing their simplified tax status [2].
Deputy Jorge Goetten (PL-SC), the rapporteur of bill PLP 108/2021, is leading the proposal in the Chamber of Deputies in Brasília [1]. The bill seeks to raise the current revenue cap of R$ 81,000 to a new limit. While some reports state the proposed ceiling is R$ 130,000 [3], other sources indicate the figure may be as high as R$ 134,000 [1].
The Chamber approved the urgency procedure on Tuesday, May 17, 2024 [4]. This designation accelerates the legislative process by allowing the bill to bypass certain committee stages and move more quickly toward a final vote. A vote in the plenary is expected by mid-July 2024 [1].
Under current rules, entrepreneurs who exceed the R$ 81,000 limit must transition to a more complex and costly tax regime. The proposed increase is designed to prevent this forced transition for those whose growth is driven by inflation or modest business expansion [2].
If the bill passes, it could allow business owners who were forced to leave the MEI category in 2026 to return to the simplified system [5]. This would provide a significant financial relief for those currently paying higher taxes due to the outdated revenue thresholds [5].
“The bill seeks to raise the current revenue cap of R$ 81,000 to a new limit.”
The adjustment of the MEI ceiling represents a critical update to Brazil's fiscal policy for the smallest business tier. By raising the threshold to approximately R$ 130,000, the government acknowledges the impact of inflation on gross revenues, ensuring that nominal growth does not inadvertently penalize small business owners with higher tax burdens and administrative complexity.
