Brazil, green light for tax amnesty for micro-entrepreneurs

The Brazilian Senate has unanimously approved, with 78 votes in favor and no against, two bills which provide for the forgiveness of certain tax debts of individual micro-entrepreneurs (MEIs), the increase in the annual turnover ceiling and the possibility of hiring up to two employees. The texts, approved yesterday by the Chamber and today by the Senate, are part of the "Prospera Mei" package promoted by President Luiz Inácio Lula da Silva.

The turnover limit will rise from the current 81,000 reals (approximately 14,387 euros) to 110,000 reals (19,538 euros) in 2027 and to 140,000 reals (24,867 euros) from 2028. The amnesty will concern the tax debts of individual micro-entrepreneurs with the federal state, whether or not registered in the active debt register, accrued by 13 October 2026. To benefit from the relief it will be necessary to maintain regular contribution payments in the six months following the entry into force of the law and to renounce any legal cases relating to debts. The text now moves on to the sanction of President Lula, necessary for the measures to come into force from 1 January 2027.