MEI: Approved PL that exempts micro-enterprises for 5 years

Representative Jorge Goetten (PL-SC), rapporteur of the Project, recommended approval in his vote. “The proposal seeks to provide tax relief for small businesses that, due to the Covid-19 pandemic, were severely affected. The proposed tax incentive should help generate jobs and income,” he pointed out.

According to economist Otto Nogomi, from the INSPER Education and Research Institute, two important aspects must be considered. “It will be important to establish effective monitoring and enforcement mechanisms to ensure that companies do not abuse the exemption — and that it is applied fairly and efficiently. And the second is that the exemption for 5 years must be analyzed in the long-term context, considering whether micro-enterprises will be prepared to face the normal tax burden after the exemption period”, he states.

Today, the annual revenue that allows for inclusion in the simplified taxation regime is up to R$360,000 for micro-enterprises and up to R$4.8 million for small ones.

In the opinion of Juliana Diniz, a 40-year-old microentrepreneur from Brasília (DF), owner of a drinks delivery company, the project is very valid and truly compensatory for everything those responsible for small businesses went through during the pandemic — and even during this first post-pandemic year.

“I think it’s very fair, in fact, it’s a form of compensation. This year we already had the adjustment of the Simples Nacional, from R$60 to just over R$80, so this will help a lot in order to give a greater incentive because , we, MEI, already have a, let’s say, limited income, as we are micro-entrepreneurs, so any R$70.00 that we have to pay per month already makes a difference at the end of the year”, he points out.

What to expect?

The proposal must still be analyzed by the Finance and Taxation committees; and of Constitution and Justice and Citizenship, of the Chamber of Deputies. It will then go to the Plenary where it can be voted on for future implementation.