Simples Nacional: learn more about the unified taxation regime

Every entrepreneur, when opening a business, must choose a taxation regime. To do this, it is necessary to analyze issues such as the company’s revenue limit, which taxes need to be paid, how the tax is calculated, among other variables. In Brazil, there are three tax regime options: Real Profit, Presumed Profit and Simples Nacional.

The Special Unified Regime for the Collection of Taxes and Contributions owed by Micro and Small Businesses, better known as Simples Nacional, was created in 2006 — from the Complementary Law No. 123 — and allows you to unify the payment of various taxes, both federal and state and municipal.

Among the taxes collected monthly by the entrepreneur, when opting for the unified regime, are:

Corporate Income Tax (IRPJ);

Tax on Industrialized Products (IPI);

Social Contribution on Net Profit (CSLL);

Contribution to Social Security Financing (Cofins);

Contribution to PIS/Pasep;

Employer Social Security Contribution (CPP);

Tax on Circulation of Goods and Services (ICMS);

Tax on Services of Any Nature (ISS).

The deadline for payment of the Simples Nacional Collection Document (DAS) is until the 20th of the month following the month in which the gross revenue was obtained.

Individual Microentrepreneurs (MEIs), Microenterprises (ME) and Small Businesses (EPP) can opt for Simples Nacional. To do this, it is necessary to respect the annual revenue limit established by legislation:

MEI: up to R$81 thousand/year

ME: up to R$360 thousand/year

EPP: up to R$4.8 million/year

You must also meet other requirements to qualify for Simples Nacional, such as:

have the legal nature of a business company, simple company, individual company or individual entrepreneur;

not have debts with the government;

not carry out banking and/or financial institution activities;

not be a generator, transmitter, distributor or seller of electrical energy;

not engage in the import or manufacture of automobiles and motorcycles;

not carry out fuel import activities;

not carry out production or wholesale activity of: cigarettes, cigarillos, cigars, filters for cigarettes, firearms, ammunition and gunpowder, explosives and detonators, non-alcoholic beers and alcoholic beverages (except, as of 2018, those produced or sold wholesale by micro and small breweries, micro and small wineries, liqueur producers and micro and small distilleries) and

not carry out rental activities of own properties, except when referring to the provision of services taxed by ISS, among other requirements.

17 years of Simples Nacional

Simples Nacional came into force on July 1, 2007, after the struggle of entities led by the Confederation of Commercial and Business Associations of Brazil (CACB) managed to approve the Micro and Small Business Statute. Since then, the number of companies opting for the regime has increased from the initial 2.5 million to 23.1 million in October 2024, according to the Federal Revenue Service.

Tax law specialist Thulio Carvalho, master in Law from PUC/SP, details the objectives behind the creation of Simples Nacional.

“In its origin, this system aimed to encourage the formalization of economic activities that were in the initial stage of development, as well as those of a small scale. In reality, what was intended with the creation of the system was to reduce the underground economy, that is, to reduce the number of businesses carried out outside of State supervision and which, for this reason, ended up not being taxed by the Union, the states and the municipalities.”

According to a survey by the Brazilian Micro and Small Business Support Service (Sebrae), 71% of entrepreneurs who opted for Simples Nacional consider that the system is easy to understand and at least half say they would pay more taxes if they switched to the Presumed Profit or Real Profit.

According to Sebrae customer relationship manager Ênio Pinto, Simples Nacional gave visibility to many micro-entrepreneurs who were in the informal sector.

“The MEI status allows you to take a business out of informality and, from the moment it is formal — which will even be able to have invoices — (it can) sell to other companies, to the government itself. I think the figure of MEI is a watershed in the Brazilian economy, because it takes many people out of informality and catalyzes, boosts and accelerates the process of entrepreneurship in the economy as a whole.”