Being an Individual Microentrepreneur (MEI) is an excellent alternative for self-employed workers or service providers with incomes of up to R$60,000 per year. The system is ideal for those seeking to formalize their business, with less bureaucracy and low costs. The MEI enjoys several benefits: social security coverage, legal security, access to banking services, the possibility of hiring a professional with less expenses and exemption from fees for company registration are some of them.
Despite being a fairly simplified legal entity in terms of calculating and paying taxes, the Microentrepreneur is not exempt from some tax obligations. Check out the main obligations of the MEI:
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Monthly Taxation
Obtain a provisional operating license
Submit the annual declaration
Obtain a permanent operating license
Pay for the hiring of the employee
Monthly Taxation
The MEI collects the taxes it has to pay in a simplified manner. Thus, the MEI's obligations include the monthly payment of practically symbolic fees related to the Tax on Services (ISS) and the Tax on Circulation of Goods (ICMS), in addition to the percentage of 11% on the minimum wage in effect at the time, in order to pay the INSS. It is important to remember that the MEI is exempt from federal taxes such as IR, COFINS, PIS, IPI and CSLL.
Obtain a provisional operating license
Once the MEI completes its formalization, it receives a provisional operating license, a document that allows it to operate, but in many municipalities, it can canadian consumer email lists only issue invoices. This limiting situation is resolved with the granting of a definitive license, which must comply with municipal regulations, with the MEI having to request a prior location consultation in order to know if its address is in accordance with urban zoning codes and municipal ordinances.
Submit the annual declaration
Each year, in accordance with the tax calendar, the MEI must submit the Simplified Annual Declaration (DASN-Simei) to the tax authorities, which must be submitted by April 30 of each year and must indicate all revenue achieved as an MEI in the previous year. The procedure can be carried out by the entrepreneur himself or by a specialized accounting firm. It is worth noting that the MEI is not exempt from submitting his annual adjustment declaration to the Federal Revenue Service, since he is an IRPF taxpayer, even if exempt.
Obtain a permanent operating license
Any industrial, commercial or service provision activity requires authorization from the city government to be carried out, which obviously includes Individual Microentrepreneurs. For MEIs, the license (or permit) is granted free of charge, without the need to pay any fees. The same rule applies to MEI registration with the Commercial Board.