Government wants to raise MEI’s billing limit to R$ 144,900

The federal government is working on a proposal to increase the income limit of the Individual Microentrepreneur (MEI) to R$ 144.9 thousand. The initiative was announced this Thursday (24th) by the Ministry of Development, Industry, Commerce and Services (MDIC), headed by Vice President Geraldo Alckmin (PSB). The text was approved by the MEI Technical Committee, of the Permanent Forum of Micro and Small Businesses (FPMPE).

Now, the ministry is evaluating the format to be adopted for sending the proposal to the National Congress. The project also provides for the creation of a gradual “transition ramp” so that businesses that increase revenue can adapt to the rules in changing from MEI to Microenterprise (ME).

According to the folder, “following the current rule, micro-entrepreneurs with revenues of up to R$81,000, the current ceiling, will continue to pay a fixed amount of 5% of the minimum wage”. The text proposes the creation of a band for MEIs that earn from R$ 81,000 to R$ 144,912, which will have a rate of R$ 181.14.

“This amount represents 1.5% of BRL 12,076.00, which corresponds to the monthly billing ceiling proposed for MEIs (BRL 144,912/12 months)”, said the MDIC, in a note. The ministry estimates that 470 thousand companies have the potential to become MEI with the increase in the billing ceiling. Currently, there are 15.4 million records of MEIs.

The “transition ramp” will give the entrepreneur more time to adapt to tax and operational changes when moving from MEI to ME. . During this period, the entrepreneur does not need to issue an invoice for all sales, hire an accountant and make adjustments at the Board of Trade”, informed the ministry.

In the case of billing above 20% of the limit, the rule remains that determines that the entrepreneur must not comply with the MEI. However, the proposal eliminates retroactivity in the transition of the tax regime.